As expected, Yellen & Co. raised interest rates by 25 basis points this week. Turns out, the Fed is the only major central bank among the global “developed” economies whose last policy move was a rate hike.
US policy seems to be normalising.
Central bank madness is still in full swing worldwide. Some developed countries with negative rates are still cutting them further. The
We have three possible scenarios on our hands. If the Fed raises rates three times this year, markets will likely go down. But if the rate hikes don’t come as often or as furious as expected, markets could go higher. Lastly, if we get more than three rate hikes this year, we’ll see bonds drop, commodities drop, and currencies against the dollar weaken.
The Pinstripe and Bowler Club shares information with MF Solutions Ltd.