The Fed did not have to blink in December 2018 because the corporate bond market had a complete 'bid' and deals weren't being pulled; in contrast, there was no systemic financial stress, so Powell's pivot was based on market psychology, not financial system stability.
factualpending
Speaker
David RosenbergEvidence Quote
“We're down 20% in a month back in December 2018. Like it was vertical down...the corporate bond market, the high-yield market was closed. Deals were being pulled. There was nothing There was no bid in That was a scary period”
Source
DoubleLine Round Table Prime, 2023 - Part 1: Macroeconomic State of Play 1-4-23— DoubleLine CapitalCreated: 8/11/2026, 1:33:48 AM
My Notes
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