Federal Reserve Chairman's testimony in front of the Senate Banking committee perhaps removed any "fantasy" (if any) that markets had about interest rate hike schedule. I think his direct remarks clearly stated that the strength of the economy at the start of the year and the inflation reduction rate drop had made it more likely that the ultimate rate could be higher than previously estimated. He also indicated that if overall data warrants it then they would increase the magnitude of rate hike. I think this was really expected as Feds are very data-driven yet all three major US indices are in the red this morning perhaps indicating that markets have still not priced in rate hike anticipations.
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