On 2/1/23, the Fed, unsurprisingly, raised rates 25bps. Moreover, they strongly suggested two more hikes of 25bps are in store and that there will be no rate cuts in 2023. Markets rallied, believing not only that the Fed won’t raise rates that much, but will actually cut rates in 2023. That’s not likely; the labor market remains too tight and the Fed won’t take any inflationary chances. Believe Powell.