Dec
14

Frisky Fed

frisky-fed Despite correctly anticipating a quarter-point rise in the Fed Funds rate today, the stock market fell 0.8%, the dollar soared by almost 1% and the 10-yr treasury skyrocketed a tenth-of-a-point to 2.57%, its highest yield since 9/22/14. Why the big moves? The Fed anticipates three quarter-point rate hikes in 2017; the markets were expecting two. Moreover, the tone of the post-meeting statement suggests the outside possibility of a fourth hike.

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Comments

  1. Jason Hutton says:

    This is so true to form. Everyone is over reacting to an expected situation. Right now the market is volatile and everyone is reacting instead of acting. This will all work itself out and everything will be balanced over time. The sense of panic only extends the amount of time it takes us to get back to a balanced state

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