Fed raises interest rates by 0.50%, largest move since 2000

  1. Is anyone else watching this press conference live? JPOW could teach a masterclass on not actually answering anything being asked, sheeeesh

  2. Silly JP, everyone knows you fight fire with a bigger fire. No wonder inflation is so high, the guy is an idiot.

  3. Isn’t a rate hike usually bad for markets? Why did everything start going up after this announcement? Forgive my smooth brain if am incorrect.

  4. We need a higher hike to tame inflation. Over leveraged banks will continue to borrow at these low rates. Highest rate hike since 2000 but we are dealing with a situation more like the black Monday of 87. Which can easily be turned into the crash of 1929 because hedgies are bitches and this time they will get liquidated by me and me alone. Let’s not even mention the you and million others. Think of this as a slow bailout and can kicking we keep paying for everything at higher cost so the banks don’t get the rug pulled from under them. Literally class warfare. They are literally, in front of us working together to keep each other afloat, and all i have to do is buy DRS, and hodl.

  5. I'm not the expert on this one so take this with a grain of salt, but I think one of the reasons we saw the spike was due to the reverse repo % increase from 0.3% to 1.0% in tandem with the interest rate hike of 0.5%. Given that the RRPs are overnight transactions (i.e., freeing their capital back up for the next morning) banks are still able to make a profit on lending out capital during the day, even with the hike of 0.5%. Each night they park their cash and earn 1% annualized, each day they can borrow just a teensy bit more at 0.5% annualized. So effectively the market just got significantly better for the banks (a 200 bps improvement from yesterday/the past few weeks) and as long as they hold a ratio of $2 in assets for RRP to every $1 in borrowings from the Fed, they should make money effectively risk free.

  6. "priced in". The market already reacted to what they thought the news would be. Volitile reactions occur when news comes out that's not expected. Everyone expected this.

  7. The way i see it is that the fed and the banks know the recession is coming. But theyre lying through their teeth to retail investors still.

  8. It is. But hedgies are made to take money from retail. When this was announced a lot of retail and small hedgefunds probably bought puts. In order to take money from them, the big guys and banks make the opposite happen, and take your money.

  9. Because the market already priced in .75% rate hike. Anything lower than .75% is considered as good news and the market rally.

  10. Queen Kong put out a tweet saying the rate hike lowers the cost of FTD's at the DTCC. I can see how this would help the SHF's but I'm too smooth to understand how it affects markets.

  11. So we're now sitting at a total of .75% interest? Meanwhile inflation is nearly 8% according to the CPI report, (likely double that).

  12. Either the Bull Run is back on the menu and the market will never crash, or this will be the biggest damn Bull Trap we've ever seen.

  13. I’m going with option #2, biggest damn bull trap we’ve ever seen. Fed will sell at the top as always, and retail gonna be holding heavy ass bags.

  14. They expected a 0.75% increase and were heavily shorting. Fed is still acting dovish and went with a 0.5%. Hence the huge rally afterwards was them closing their shorts

  15. “The Federal Reserve on Wednesday raised short-term interest rates by 0.50%, as part of an effort to tamp down on the inflationary pressures weighing on Americans.

  16. Assuming this market close 3% gain is not a bull trap and the market starts steadily climbing again, I would expect there to be emergency meetings convened before the next scheduled one to raise rates again. Especially if inflation numbers push into the 9s and 10s. Powell may just get his Volker moment after all, though by no choice or design of his own.

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