Off With Head Of The Federal Reserve? Why This Trader Says Jerome Powell 'Should Be Fired,' Stocks Face 'Bloodbath' In 2023

TradeEZ.com, co-founder Steve Kalayjian sees a bloodbath brewing in the broader markets as a result of Federal Reserve policy and he's calling for Fed chair Jerome Powell's head.

"He should be fired," Kalayjian said Thursday on "Benzinga Live."

What To Know: When inflation first started creeping higher, the Fed insisted that it was transitory. "They were nowhere to be found," Kalayjian said.

See Also: Why The Bond King Says The Fed Needs To Stop Raising Interest Rates

Now the central bank could be confronted with stagflation and the Fed doesn't know how to handle it, he said. 

"I think 2023 is going to be a bloodbath in the equity markets ... so I wouldn't be long with your money here," Kalayjian said.

Why It Matters: The SPDR S&P 500 SPY was volatile this week as investors focused on CPI data and the Fed's response. The market appears to have made up its mind — investors are retreating following the FOMC meeting. 

Mega-cap tech appears to be leading the charge lower, led by declines in Apple Inc AAPL and Alphabet Inc GOOG.

The headline CPI increased 7.1% last month, down from 7.7% in October. The November CPI reading came in below average economist estimates of 7.3%, according to Benzinga Pro. 

The Fed opted for a less aggressive hike in response to the data, raising its target range for the federal funds rate by 0.5%. In a press conference following the decision, the Fed chair acknowledged that recent data is encouraging, but he indicated that it's not enough.

"It will take substantially more evidence to get confidence that inflation is on a sustained downward path," Powell said. 

Check This Out: Fed Still Needs 'Substantially More Evidence' Following 0.5% Rate Hike — Experts React With 'Famous Last Words'

Kalayjian told Benzinga the Fed has no accountability.

They sat on their hands and let inflation run before they took action, he said: "Where were they at three and four percent?"

Now Powell wants to "ruin people's lives" by cutting American jobs. "He should lose his job," Kalayjian said. 

He noted that 30-year yields are falling and told Benzinga that the bond market is flashing a pretty important signal. It's either calling Powell a liar, saying there's no way he's going to keep raising rates or it's predicting a severe recession that eventually will lead to rate cuts.

Check out the full interview with Kalayjian below:

SPY Price Action: The SPY was down 2.82% at $388.19 at time of publication, according to Benzinga Pro.

Photo: courtesy of the Federal Reserve.