It would cause a lot of panic on Wall Street.
If he were the Chair of the Federal Reserve, Michael Schumacher said he would consider a 150 basis point hike.
The Fed knows what's going to happen. The funds rate is 2.5% at the moment. The firm's head of macro strategy believes it will get to 4%-plus this year. Shouldn't we just rip off the Band-Aid? We need to get there in a day. The Fed wont do that.
It would be difficult to pull off without causing a lot of harm. policymakers need to convince investors that the jump in rates is front loaded
It would do a big move and then stop. They've done a record-sized move, that's the biggest fear in the market. Next month or the month after that, what will happen? We need to get out of the way. Good communication and confidence would be required. Nobody would want that.
The Street thinks the Fed will raise rates by 75 basis points on Wednesday. The Fed has raised its rate five times this year.
The Street has a forecast for the meeting rate. He thinks Powell will be more cautious during the news conference due to inflation.
We've had easy monetary policy for most of the last decade. I think it's going to be very difficult to do a quick U-turn. It has been difficult. It's a big leap to think that it would go smoothly from here.
The S&P 500 is down three out of the last four days. The S&P is down 4% since the July Fed meeting.
The yield on the Treasury is rapidly increasing. The yield on the 2-year Treasury note reached its highest level in seven years. It is a safe place to invest.
There is a front end of the US Treasury curve. The two-year treasury has a yield of 4%. It has gone up a lot. The real yield, which a lot of people in the bond market focus on, is not a bad place to hide out. For a short period of time, sit there and watch what the Federal Reserve does.
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