I was tickled as I read an article on Bloomberg titled, "Fed Mulls ‘Game Changer’ to Jolt Inflation: Decision Day Guide" [news].
The quote in the title came from Chief Economist Vincent Reinhart at Dreyfus and Mellon. He was describing how the U.S. Fed Chairman Jerome Powell will have to present himself at his upcoming June 22 and 23 semi-annual testimony before the U.S. Congress.
Spiking inflation in the U.S. has bristled many U.S. lawmakers. Since the mandate for the U.S. Fed is to control inflation, it is fair to say Powell has perhaps the most stressful job in the world right now.
For sure, the U.S. Fed is going to hike the Federal Fund Target Rate in tonight's FOMC meeting. The question is by how much?
Some professionals think an increase of 50 basis points is still on the table; CME Fed Fund future traders believe a 75-basis point increase is more likely [data]; yet, there are a few extremists who believe a 100-point hike cannot be ruled out either. [news]
None of the above three choices will satisfy investors completely. So a massive reaction in the equity market is not unexpected.
Hang on tight for a long roller coaster ride.
The quote in the title came from Chief Economist Vincent Reinhart at Dreyfus and Mellon. He was describing how the U.S. Fed Chairman Jerome Powell will have to present himself at his upcoming June 22 and 23 semi-annual testimony before the U.S. Congress.
Spiking inflation in the U.S. has bristled many U.S. lawmakers. Since the mandate for the U.S. Fed is to control inflation, it is fair to say Powell has perhaps the most stressful job in the world right now.
For sure, the U.S. Fed is going to hike the Federal Fund Target Rate in tonight's FOMC meeting. The question is by how much?
Some professionals think an increase of 50 basis points is still on the table; CME Fed Fund future traders believe a 75-basis point increase is more likely [data]; yet, there are a few extremists who believe a 100-point hike cannot be ruled out either. [news]
None of the above three choices will satisfy investors completely. So a massive reaction in the equity market is not unexpected.
Hang on tight for a long roller coaster ride.
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