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The Fed Keeps hiking

This week the #federalreserve will meet again to decide if interest rates need to be increased to continue fighting inflation. After a pause in June, the market expects another hike to 5.25%-5.5% almost with certainty. The fact that the economy may enter into a recession is secondary to the inflation threat, despite the fact that it has come down aggressively and on a straight line since June ‘22. The banking sector continues with the life line of #btfp and the reverse #repo market with the fed, albeit off its maximum of $2.4Tn, still amounts to $1.7Tn every day. The key indicator for the fed seems to be unemployment, which continues to be low, and the market, pushed by global liquidity, has found its way up, getting closer to the December ‘21 max. The fed will continue to pressure the US economy.


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Chart Source: investing.com



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