Fed Raises Rates To Highest Level Since 2007


On Wednesday, The Fed raised the fed funds rate to a range of 5.00%-5.25% – the highest level since 2007. Importantly, they removed a line from their statement saying that “the committee anticipates that some additional firming may be appropriate” leading markets to believe that they are signaling a pause.

The question now is: What will be the fallout – if any – from this historically rapid and large tightening cycle? Market placidity is suggesting a soft landing but my bias is that such a rapid tightening will result in a nasty downturn.

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