One of our real experts called this one right. Here’s his voicemail in reaction to the Fed moves in the last hour:
As you may know: The Fed only raised a quarter.
“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 5-1/4 to 5-1/2 percent. The Committee will continue to assess additional information and its implications for monetary policy. In determining the extent of additional policy firming that may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 percent objective.”
After the raise – though widely expected – we think the real market reaction will come over the balance of the trading week.
We shall sit and watch.
Meantime at this hour in the Ukraine war, there are reports of further escalation as Prelude to NATO involvement: “Russia hit Romanian ship” – Moscow extended naval blockade: No more Black Sea and Danube for Kiev! – WarNews247
Av 9?
When you get rich…
George@Ure.net
“After the raise – though widely expected – we think the real market reaction will come over the balance of the trading week.”
The future’s uncertain, and the end is always near. Let it roll baby, let it roll… – Jim Morrison (The Doors)