Fed Hikes 25bps
Fed Hikes 25bps
The Federal Reserve just announced a hike of the federal funds rate of 25bps which now puts it at 0.5%. I wouldn’t call this the end of QE but it’s definitely a good step forward. Even more positive however is what just happened:
Which is absolutely nothing. Equities spiked a little both ways but thus far locust has not descended on our house, I don’t see it raining frogs, and I will let you know about our first born when he finally decides to check in on skype (or not).
This Zero however remains flat as a flounder thus I would caution you guys against trying to play the swings. We still may see a squeeze in either direction once the market has had a bit more time to digest the news.
UPDATE: The Fed received a dot plot of the planned increases, supposedly putting us on schedule for rates at 1.5% at the end of 2016 and 4% at the end of 2018. Call me skeptical but heck – I was wrong about them raising at all during this decade. IF you can call 25bps a meaningful increase is another story 😉
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Cheers,