The market opened tentatively making it even more vulnerable when the highest-ranking dove on the FOMC voting committee laid out the case for aggressive action, including immediately drawing down the balance sheet.  Lael Brainerd also made a curious admission about the Fed only just now understanding the impact of inflation on different households.

Excerpts

Variation in the Inflation Experiences of Households

Governor Lael Brainard

https://www.federalreserve.gov/newsevents/speech/brainard20220405a.htm

I have to say I’m shocked the Federal Reserve admits they don’t understand the ways inflation experiences vary from household and across different income and demographics.

The Market

I doubt the market stages any kind of strong rally higher, but it’s the kind of move I want to see for greater confidence to buy weakness later in the week.