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As Expected +25 Basis Points

As expected the Fed has raised the Fed Funds rate by 1/4%–but has included somewhat hawkish verbiage in the statement implying more hikes to come. Anyone looking for a pause needs to keep hunting for one I guess.

Stephen in a comment this morning hit it perfectly–“the Fed held the increase to 1/4% (versus 1/2%) in exchange for a hawkish tone”–he hit the nail right on the head.

As expected the S&P500 has gyrated around on the news–interest rates haven’t moved too much yet.

So we have that out of the way until the next meeting which will be March 21/22—so back to ‘normal’ business tomorrow.

5 thoughts on “As Expected +25 Basis Points”

  1. Why can’t there be an exact Fed Funds rate and not just some range? When did this range business start anyway?

  2. Most dovish Powell speech I can remember hearing.

    Saw a recent headline,,,,,,another 5% market rally will be like bathing in lava for the shorts! AND ZH says short bond exposure at record high levels. I have no idea how they measured that. Anytime I hear such commentary I try to remember there are deep pools of money, like BLK’s of the world, are out the to steam roll you.

    Also I can give this thought. I know someone who made a lot of money short last year. And had finally covered. He was scoffing at those going short just then. Like beg of december. He felt another 10% maybe more but the real money had been made. He who sells what isn’t hisn’

  3. When Money Market rates drop back to .025% from 3.3% and CDs are back to 1.25% from 4%-5% and corporate bonds and US treasuries are selling so much above par that retail investors are priced out of the Market. I’m sure Mass Media, who ever’s opinion they represent will be cheering about the return to rate repression, free money and the debt tsunami waiting to engulf all of us. I’ve seen pigeons more hawkish then the recidivist apologists of the Fed.

  4. Sure they talk about more hikes. As soon as he starts thinking about thinking about pausing of cutting stocks will moon

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