Fed Watch

What Does September’s Rate Hike and Dot Plot Mean For Markets?

The FOMC met yesterday to announce their latest rate hike. As the market for Fed Funds Futures implied leading up to the meeting, the committee decided on a 75-bps hike. We wanted to provide a special update on where things stand with the Fed and markets after their third-to-last meeting of 2022. The next rate decision will be on November 1-2. The final of the year will be December 13-14. So, firstly we want to explain some of the reasons why Powell has changed his communication style recently. The Fed Chairman has found the pitfalls of openly opining on the future as a Fed chairman and we expect him to internalize this lesson going forward. After that, we will go over some of the key takeaways and consequences from this most recent meeting. Lastly, we will discuss our research heads' thoughts on the recent Fed meeting.

Below you can see the future rates as implied by Fed Futures, they currently suggest a terminal rate of just under 4.6% in April 2023.

The video in this report is only accessible to members

We know reading about the Fed can be confusing and even unpleasant. So, we thought we’d give you some Fed poetry to summarize the events in a more fun and engaging way. It’s not meant to make light of the ominous economic situation we together face:

‘Twas the night before Fed Day and ...

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