Fed Raises by 75-bps But Signals More Normal Hikes Possible, PCE Comes in Hot

The Fed’s July meeting was on Wednesday and, as expected, the FOMC raised rates by 75 bps to a range of 2.25%-2.5%. This was the second consecutive jumbo rate hike. The two back-to-back hikes of 75 bps were actually the most stringent consecutive action since the beginning of the 1990s when the Fed began using the rate as its primary mechanism of implementing monetary policy. The Fed Funds rate is now the highest it’s been since the end of 2018. Unlike the last large rate hike the Fed recei...

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