Queue Succession Main Title soundtrack.
Power. That’s what Fed Chair Jerome Powell must feel right before he announces rate hikes.
Yesterday, JPow raised rates by 0.25 percentage points — bringing the target to 4.50 to 4.75%. No surprises here.
This is lower than the 0.50 percentage point hikes we got in December or the four consecutive 0.75 ones we had before.
The correct reaction to the news: Well, that’s…
Investors were dissecting his every word to figure out when he’ll stop raising rates.
Anything? Here’s what we got:
- It’s too early to “declare victory” over inflation.
- Inflation is still too high, and he’s set on bringing it down to 2%.
- “Given our outlook, I don’t see us cutting rates this year, if our outlook comes true.”
But he did finish with some positive words — saying there’s still a path to a “soft landing,” — aka raising rates without entering a recession.
The CME FedWatch Tool has an 82.5% chance of another 0.25 hike next meeting.
Mark two dates on your calendars: March 22 — the next rate hike decision, and March 26 — the Succession Season 4 debut.
