What Happens After A Fed Rate Hike?

Fasten your seatbelts, everyone—interest rates have lifted off. In June 2022, the Fed Chair Jay Powell and the FOMC voted to hike their target range by 75 basis points, to 1.50-1.75%. Marking the largest single hike since 1994, the Fed delivered investors a mixed bag of emotions—everyone wants inflation to cool off, and a higher … Continued

2008 vs. 2020: What Happens When the Federal Funds Rate is 0%?

During each of the fourteen Federal Open Market Committee meetings from March 2020 through June 2021, Chair Jerome Powell and committee members have decided to leave the federal funds rate unchanged, at a target range of 0% to 0.25%.  With inflation on the rise and unemployment falling, the Fed instead revealed their plan to increase … Continued