Fintwit's avatar
$119.2m follower assets
Fed policy decision
The Federal Reserve announced a 0.75% interest rate hike, the largest increase since 1994
Yegor's avatar
Interest rate higher and so is stock market 🤷🏻‍♂️
Green Candle Investments's avatar
Wild it is the largest hike in 28 years. Do you think that it will help with inflation on goods and services? It seems like it will help on asset price inflation but there is still issues with the supply chain which are not going away
Vincent Poy's avatar
I wished it was higher because if interest rates goes up, it means the economy is doing good and it's to slow it down. Ofcourse, that's my personal opinion. Now hopefully Money Market Funds will follow. Anyone knows what the Fed Funds Rate is after the increase?
Edmund Simms's avatar
@almighty188, the federal funds rate is now between 1.5% and 1.75%.
StockOpine's avatar
It seems that the market reacted positively to this with the S&P500 closing 1.46% higher and the Nasdaq with 2.5%.
Joey Hirendernath's avatar
Shoulda been long the 10Y :)
Leandro's avatar
Interest rate higher now means a healthy economy in the future so I understand the market's reaction tbh
Rihard Jarc's avatar
Problem is even Jerome said yesterday multiple times that the key components driving inflation higher right now (food and energy + supply chains) they cannot effect much....
Eric Pelnik's avatar
Would have made Volcker proud. Going to need more of these to get inflation back down.
Edmund Simms's avatar
The Federal Reserve could hike by 25bp at the next 21 consecutive meetings and still wouldn't reach the federal funds rate prescribed by the Taylor rule