Commentary
What “should” have happened last month to the Treasury curve did not. The Federal Reserve, as you know, is in a race with itself to fulfill what are almost certainly politically-driven directives. From the White House through the Halls of Congress, the need for someone somewhere to appear to be doing something about “inflation.”
Since that job is, by law, for the Fed what we’re getting is rate hikes. The FOMC, the central bank’s policymaking body, voted last month for a single quarter-point increase to its federal funds range. More increases are on the way, likely to be at double the change.
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