by Dave Fairtex
Chris Martenson’s Peak Prosperity
The Fed, as expected, raised rates by 75 basis points (0.75%) on Wednesday. Powell’s press conference was seen as bearish – he was focused on raising rates higher, for longer, than previously. This isn’t an interpretation, Powell himself said this, as relayed by Wolf (Source – WolfStreet); “What I’m trying to do is make sure our message is clear: we think we have a ways to go. Rates have to go higher and stay higher for longer.” Higher for longer. Pretty clear, yes?
By Friday, the chart showed what short-term rates looked like, with the Fed Funds rate in black. Perhaps the 1-year rate (4.74%) is “the forecast” where the market thinks the Fed might stop? At least for right now, anyway.