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When the fed starts raising, they always end up raising 6+ times. When on #2 they are raising it this much... hold onto your socks. >and current market pricing
by incomingpain 5y ago
When the fed starts raising, they always end up raising 6+ times. When on #2 they are raising it this much... hold onto your socks.
>and current market pricing has the rate rising to 3%-3.25% by year’s end
Are you holding on tight?
>“In addition, COVID-related lockdowns in China are likely to exacerbate supply chain disruptions. The Committee is highly attentive to inflation risks,” the statement said.
To debate supply vs demand side is pointless because the fed doesn't even know.
- simulate-me 5y ago3% is still super low historically. Let's wait and see how the economy actually reacts to the rising rates. Back in 2019, the Fed got cold feet and started lowering rates after hitting ~2.5%. The amount of money in the system is also unprecedented. Judging by the reverse repo rate, people are sitting on $2T with nothing to do with it. Maybe higher interest rates will bring that down, but inflation looks like it will remain high for some time.
- incomingpain 5y ago>3% is still super low historically. Let's wait and see how the economy actually reacts to the rising rates. It just dropped 1.4% because of a 0.25% increase. Yikes. >Judging by the reverse repo rate, people are sitting on $2T with nothing to do with it. They are hedging their bets, not doing nothing with it. >but inflation looks like it will remain high for some time. About 1.5-2 years is my guess.