The Fed delivers another jumbo rate rise, and it’s far from done
There is a good chance it will keep rates high for longer than investors expect
As recently as the start of June investors and analysts believed that a “jumbo” interest-rate rise for the Federal Reserve meant half a percentage point. How quaint. After four straight increases of three-quarters of a percentage point—the latest on November 2nd—perceptions have changed. Indeed, a stockmarket rally in the two weeks before the announcement was rooted in the belief that the Fed may scale down to a half-point rate increase at its next meeting in December. What was once jumbo is now moderate.
This article appeared in the Finance & economics section of the print edition under the headline “Faster, higher, longer”
Finance & economics November 5th 2022
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- Even recession may not bring down Europe’s inflation
- The Fed delivers another jumbo rate rise, and it’s far from done
- The growing popularity of a strange form of debt diplomacy
- Financiers’ pronouncements on China do not match their actions
- Xi Jinping promises financial stability. He is not delivering it
- How best to bring back manufacturing
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