As expected, the Fed increased its benchmark rate by 25 bps today, raising the target federal funds rate (TFFR) to 5.25%-5.50%. This now exceeds the peak of the 2004-2006 rate hiking cycle when the TFFR reached 5.25% (peak lasted from June 29, 2006 until September 18, 2007). You have to go back to early 2001 for a time when the TFFR was higher.
Below is the excerpt from today’s statement with the rate decision.
Today’s rate hike kept the Fed on track for an “every other meeting” rate hike strategy which was...
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