This rate hike isn’t even as good as a hair from 2022. Back then, it went from 0 to 4.5, with over a dozen consecutive hikes, and it was done within 16 months. There was also quantitative tightening (QT), and QT was much more severe than the rate hikes. QT is basically equivalent to not being able to borrow money; rate hikes just mean interest is higher. This time it’s high-level hikes, and they won’t be able to hike many times. How long can they still add between 3.75 and 4?
In this phase, there’s no QT, and interest rates are high—objectively speaking, there’s nothing that’s particularly terrifying.
But if market and economic conditions suddenly shift the other way, and they stop hiking—then after the market returns to higher heat, that’s actually more dangerous. You’re looking at the timing for a big drop, so wait for the easing cycle to begin.
It depends on how much reaction the market has after this announcement—basically none. $BTC $ETH $SNDK has rebounded a bit, so there’s no need to be overly pessimistic. #Fed SEP expects a 2026 rate of 4.1%