Fed's 'Dovish' Plot Twist: Lavorgna Says Market's Finally Reading the Room (Mostly Wrong)

Joe Lavorgna, Chief Economist at SMBC Americas, dropped some truth bombs on Fox Business, and the crypto crowd should probably take notes. Or maybe not. We didn't listen during the last three rate cycle lectures either, and that worked out... fine. Mostly fine.

Lavorgna's hot take? The market is absolutely butchering its read on Jerome Powell's recent remarks. Apparently, we've officially entered "dovish" territory—the place where rate hikes go to die and bulls start foaming at the mouth again.

The old narrative—that high oil prices directly fuel inflation—has officially been yeeted into the sun. Now the storyline reads like a completely different episode: high oil prices create recession risk. Energy costs are putting the squeeze on consumer spending and business confidence, which has apparently convinced the Fed to swap their hiking boots for something more comfortable and rate-cutting-adjacent.

Lavorgna warned that some market participants are still