I was certain that the Federal Reserve would raise rates today. They did not.
Once again, the Saroff powers of prognostication maintain their sterling record of failure. ¯\_(ツ)_/¯
Still, it looks like there will be a rate hike later in the year, so the bond markets were spooked.
Federal Reserve officials Wednesday signaled they might soon need to raise interest rates instead of cutting them, a sharp shift in thinking amid a rapid rise in inflation.
The Fed kept interest rates steady Wednesday at Kevin Warsh’s first meeting as Fed chair, as the new central bank chief inherited an economy hit by energy-driven inflation that is squeezing consumers’ wallets and a White House pushing for lower borrowing costs.
Nine of the 19 officials who participate in Fed policy meetings penciled in at least one rate increase by the end of the year, up from zero in March, when most Fed officials still anticipated cutting rates.
Financial markets fell on the signals of higher interest rates. The Dow Jones Industrial Average closed down about 1 percent, and the tech-heavy Nasdaq fell 1.3 percent. Yields on U.S. Treasury bonds jumped, as investors demanded higher returns to compensate for the prospect of potentially rising interest rates.
It is what it is, and I have no clue as to what it is.
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