Fed raises interest rates modestly, plans seven rate hikes in total this year

Discussion in 'Economics' started by ipatent, Mar 16, 2022.

  1. SunTrader

    SunTrader

    Shhh don't tell anyone but they have been quietly easing already - and you can see the result in the $SPX ;):-
    $ SPX.png
     
    #11     Mar 16, 2022
    Millionaire likes this.
  2. MKTrader

    MKTrader

    Must be nice to be in Congress, and vote for pay raises that are well above the inflation rate whenever you want. Just hide it in some 2,000+ page omnibus bill.
     
    #12     Mar 16, 2022
  3. RGLD

    RGLD

    What is the difference between the a fed rate hike and the fed minutes released later?

    I remember a few months ago, after a fed meeting, they said they've planned to raise rates, but the market completely tanked after the fed minutes were release a week later. Is there something in the minutes that's not discussed during the meeting?
     
    #13     Mar 16, 2022
  4. Overnight

    Overnight

    That was last month, Jan 5th. I remember that day well. 400 point drop in NQ IIRC.

    I suppose there were details in the full minutes that were not telegraphed by the Statement from the December meeting.
     
    #14     Mar 16, 2022
  5. SunTrader

    SunTrader

    The minutes are from the meeting.

    The decision is announced. Powell jawbones to the media. Then minutes come out in the future elaborating further. So sometimes Fedwatchers read something more into the minutes that maybe was not made clear enough by decision or Powell's pow wow.
     
    #15     Mar 16, 2022
  6. Tokenz

    Tokenz

    This is bullish news for crypto holders!
     
    #16     Mar 16, 2022
  7. RGLD

    RGLD

    Do you know what might be in the minutes last month that dropped the market 400 points after release?
     
    #17     Mar 16, 2022
  8. Overnight

    Overnight

    IIRC, it had to do with what Powell did not say during his December Q&A, which was the speed of the QT and balance-sheet offloading. Thus, the markets have been pricing that in from Jan 5th until now. The Ukraine war has certainly turned the markets on it's head over the past three weeks. Because on Jan 5th, this Ukraine shit did not exist.
     
    #18     Mar 16, 2022
  9. easymon1

    easymon1

    #19     Mar 16, 2022
  10. TheDawn

    TheDawn

    Fed minutes would reveal more information that might not have been stated in the announcement of the rate decision. Fed minutes often reveal more of Fed's actual thinking process of how they arrived at the rate decision and what their future outlook for the economy and based on these new information that were not previously revealed, sometimes the market will react strongly.
     
    #20     Mar 17, 2022