Update on Feds Even higher for longer! Fed Chair Powell noted in his comments that the terminal Fed funds rate ‘is likely to be higher than previously anticipated’ in light of the recent growth and inflation data. He said the FOMC would be ‘prepared to increase the pace of rate hikes’ if the data suggest a faster pace is warranted. The data is yet to be revealed (let’s watch the data on Payrolls Friday and CPI next Tuesday for that will give us a good indication. Powells Testimony indicates that they may be raising the Terminal Rate Forecast to 5.5-5.75%.” Let’s see what the March FOMC meeting brings but many now see the forecast of a 25bp hike as a close call, with some risk of a 50bp hike pending the payrolls and CPI releases. Why is this happening ? The economy once again is accelerating. You all keep spending too much money With inflation still running at almost 5%, Powell seems concerned that too much growth could start inflation back up again Good for ibonds treasuries cds etc bad for the market mortgages credit card debt home equity lines of credit

Posted by Suze at 2023-03-08 16:23:17 UTC