$ZEC $ENA $IR The Fed’s rate hike is already a done deal! A 25-basis-point cut lands—this time, it’s not a drill
It’s official: in the early hours, the Fed announced a 25-basis-point rate hike, taking the target range up to 3.75%–4.00%. This is the first hike since July 2023— the first in more than three years. Market pricing probabilities briefly surged to 87%; not hiking would have been the real surprise.
The dot plot’s median suggests another hike is still expected within the year. Sixteen officials expect at least one more rate increase, whereas the figure was only six back in June. In his remarks at the press conference, Waller said plainly that “inflation remains unacceptably high” and he is “not confident that inflation is moving toward our goal”—hawkishness turned up to full volume.
The impact is tangible: credit card revolving interest rates, already above 20%, are set to climb further. Over the next 12 months alone, credit card interest could cost roughly an additional $2 billion. For 30-year fixed-rate mortgages, pricing follows the 10-year U.S. Treasury. Last Friday, the 10-year yield briefly broke above 5%—for anyone buying a home, it’s something you’ll have to weigh.
Last Friday, Goldman Sachs rushed to change its stance—flipping from “hold steady” to “hike by 25 basis points.” The reason is straightforward: the market has priced in a 90% probability. If the Fed doesn’t follow through, the market could unravel.
In one sentence: cutting rates is easy once you swing the knife—but how long rates are kept elevated afterward is the part that’s truly dangerous.#美联储加息是否已成定局 #SK海力士洽谈首次在美产存储芯片 #MSTR交易量超越摩根士丹利
It’s official: in the early hours, the Fed announced a 25-basis-point rate hike, taking the target range up to 3.75%–4.00%. This is the first hike since July 2023— the first in more than three years. Market pricing probabilities briefly surged to 87%; not hiking would have been the real surprise.
The dot plot’s median suggests another hike is still expected within the year. Sixteen officials expect at least one more rate increase, whereas the figure was only six back in June. In his remarks at the press conference, Waller said plainly that “inflation remains unacceptably high” and he is “not confident that inflation is moving toward our goal”—hawkishness turned up to full volume.
The impact is tangible: credit card revolving interest rates, already above 20%, are set to climb further. Over the next 12 months alone, credit card interest could cost roughly an additional $2 billion. For 30-year fixed-rate mortgages, pricing follows the 10-year U.S. Treasury. Last Friday, the 10-year yield briefly broke above 5%—for anyone buying a home, it’s something you’ll have to weigh.
Last Friday, Goldman Sachs rushed to change its stance—flipping from “hold steady” to “hike by 25 basis points.” The reason is straightforward: the market has priced in a 90% probability. If the Fed doesn’t follow through, the market could unravel.
In one sentence: cutting rates is easy once you swing the knife—but how long rates are kept elevated afterward is the part that’s truly dangerous.#美联储加息是否已成定局 #SK海力士洽谈首次在美产存储芯片 #MSTR交易量超越摩根士丹利
