Hiking Into A Recession Leads To A Depression
The Federal Reserve has increased short-term interest rates by a quarter percentage point to a range of 5.00 – 5.25%, as expected by most analysts and investors. However, policymakers made changes to their official statement that indicate that this rate hike may be the last of the cycle. In particular, the Fed removed language from the previous statement that anticipated additional policy firming may be necessary and any future increases in the target range. Instead, the statement now emphasizes that further rate hikes "may be appropriate" without any reference to "future increases" in the target range.
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