Markets dived deep into the red today following the conclusion of FOMC meeting (albeit, gist of the message from Federal Reserve Chairman did not change since the Jackson Hole meet). The rate hike of 0.75% today was widely anticipated and policy rate is expected to rise to 4.40 this year and to 4.60 next year. This means more "big rate hike" later this year. This was not a surprise given the CPI numbers from last week. I think the Feds are also expecting that housing market is in for a correction, economy is expected to have very slow growth (year-end growth projection is 0.2%), unemployment is expected to rise somewhat and inflation target is expected to be reached in 2025. Perhaps, the optimism around a "soft landing" for the economy may be questioned. As the dust settles, let's see how the markets finish this week.
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