The did already. Fed Funds increased .25%. Non story at this point
I’m thinking it’s time for rates to go up. God help us if they go negative.
The markets have had time to factor this in. Any reaction is market timers trying to take advantage of short term swings.
This could get strange quickly...
Distraction Time
** FED RAISES INTEREST RATES 0.25 POINT IN UNANIMOUS VOTE
— SEES CONDITIONS WARRANTING `ONLY GRADUAL’ RATE INCREASES<— Dovish
— FORECASTS SIGNAL SAME 2016 RATE RISE PACE AS SEPT. OUTLOOK
— MEDIAN FED FUNDS RATE 2.4% END-2017 VS 2.6% SEPT. EST.
— MEDIAN FED FUNDS RATE 1.4% END-2016, UNCH VS SEPT. EST.
— MEDIAN 2016 PCE INFLATION OUTLOOK 1.6% VS 1.7% IN SEPT EST
— PCE INFLATION REACHES 2% GOAL IN 2018
— MEDIAN 2016 GDP GROWTH FORECAST 2.4% VS 2.3% IN SEPT EST.
— REINVESTMENT STAYS UNTIL NORMALIZATION `WELL UNDER WAY’
— statement change, “survey-based of longer-term inflation expectations have edged down.”
** As we rapidly look over all this we see little that should be a surprise; they hiked, we know why, and they’ll be gradual and data dependent. The slight, very slight, diminishment in distant dots and note on market measures of inflation expectations is perhaps slightly dovish but we’d make no big deal about it.
** Well, the market seems to generally concur — yields are a bit higher with long end outperforming, 2s up against 1%. As we wrote if this is the knee-jerk response it’s hardly much. For what it’s worth June Fed Fund Futures were 52 bp before and remain at 52 bp.
Suspect the taxpayers are going to feel this as government(local thru federal) borrowing costs are now going to increase........
Rumor going around info was leaked. Might explain the drastic dump of gold before announcement