Feisty Fed

That the Fed raised short-term rates by one quarter percentage point earlier today wasn’t surprising. What was somewhat unexpected was that the Fed now expects to raise rates four times this year, not three. But what set the markets into a slight tizzy was the hawkish tone of the post-meeting statement, suggesting that relatively soon the Fed may need to deliberately slow the economy with still tighter monetary policy.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.