Earlier today, the Fed raised the Fed funds rate a whopping 75bps, three-quarters of a point, the steepest rate hike since 1994. After telegraphing for weeks that a 50bps hike was happening, the 75bps hike hurts their market guidance credibility but helps their inflation-fighting credibility. The Fed is obviously so concerned about the incoming inflation data, it’s willing to tarnish its guidance credibility. That makes this rate hike particularly noteworthy.