The rate hike is probably child’s play compared to the less talked about QT the Fed also announced.
Correct, if inflation is running between 8-9%, even with the rate increase today we are still running negative interest rates, in order to get inflation down usually you need interest rates above the rate of inflation, meaning we need interest rates to be 10% or more to make them positive.
“The rate hike is probably child’s play compared to the less talked about QT the Fed also announced.”
$9T in treasuries and MBS will have a devastating effect on markets.
That’s why they are only bluffing when they say they’ll sell them.