22/09/2022
-Pow handed the market yet another 75bps rate hike on Wednesday, an increase that was fairly widely expected given the Fed’s stronger-than-usual wording on the inflation situation and a 0.1% MoM increase in consumer prices in August – it’s the third hike of this size in a row and takes rates to between 3% and 3.25%, the highest in 14 years.
Stocks ricocheted around the charts on Wednesday, with all four major US indices selling off and the dollar hitting a fresh 20-year high. J-Pow’s determined to get inflation down to 2% and targeting the labor market and housing will help achieve the Fed’s mandate – it likely means unemployment will go up and house prices will go down, which would leave a mark on risk assets.