The Clap The Fed meets today & tomorrow to discuss monetary policy & raise interest rates, & investors are fearing a more aggressive move to the Fed’s already aggressive approach.
The deets With May 2022 inflation reassuring everyone that the Fed does not have a grip on it, analysts are now seeing the possibility of 0.75% & even 1% interest rate hikes.
Why this matters Fed Chair Jerome Powell has so far been pretty clear about the size of each rate hike this year. Leading up to the June meeting, a 0.5% rate hike was the general consensus & what Powell had hinted at. Now that inflation unexpectedly took another turn for the worse, investors are fearing the Fed might have to deviate from the 0.5% rise it’s been hinting at.