By: Tom Gentile
on March 23rd, 2022
First rate hike since 2018. It was for 25 basis points.
How does it feel? Not bad. Keep in mind Chairman Powell said there are going to be up to 6 more this year.
And if that weren’t enough, the Fed’s policymaking committee signaled it also sees three more rate increases in 2023.
Fed officials said they see higher inflation and lower economic growth in 2022. Powell backed that up by saying “inflation is likely to take longer to return to our price-stability goal than previously expected.”
One statement Powell made that may have helped quell some uncertainty is chances of a recession are not ‘particularly elevated;’ he still thinks recession chances are low.
The market sold off immediately at the announcement but regained a bullish stance for the day by closing at or near its highs on the day.