Fed Funding

As expected, the Fed bumped rates 50bps earlier today to 4.375%. Markets were hoping the Fed might halt increases going forward due to declining inflation, and because in September Fed members anticipated raising the fed-funds rate to slightly above where it’s now. Those hopes were dashed. The Fed now expects to slowly raise the fed-funds rate another 75bps-100bps and keep the higher rate there through 2023! Bring on the recession.