Jun
15

Furious Fed

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.

Share This Post
Facebook Twitter Email

Speak Your Mind

*

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