Central Bank Watch
FOMC Rate Hike of 25 Basis Points Draws One Dissent Favoring 50 BPS
March 16, 2022
Fed officials believe the federal funds will need to climb around 225 basis points additionally before stabilizing in late 2023. There are lots of uncertainties creating cross-currents. It’s not hard to imagine even more aggressive restraint will become necessary before sustainable inflation within the targeted goal is at hand. Projected growth this year was shaved […] More
Central Bank Watch
FOMC Preview
March 16, 2022
Federal Reserve officials have repeatedly signaled that a cycle of many interest rates increases will begin after today’s FOMC meeting, and any initial incremental rise other than 25 basis points would be a huge surprise. Purchases of of Treasury and agency mortgaged-backed securities are already on schedule to end after this month. The previous cycle […] More
New Overnight Developments Abroad - Daily Update
An Historic FOMC Meeting on Tap Amid High Inflation and Some Cautious Optimism about the Pandemic and Diplomatic Efforts for a Russian Cease-Fire
March 16, 2022
The size of today’s initial federal funds rate hike is expected to be 25 basis points. I personally would prefer to see a bolder opening move of 50 basis points, as a symbolic gesture that Fed officials recognize that interest rate lift-off is starting late. But the credibility of forward guidance lies in not whip-sawing […] More
