As stock market and bond market participants wait for this week’s interest rate decision by the Federal Reserve, the debate continues whether it needs to be 1/4 point or 1/2 point increase, in the Federal Funds Rate, to show the Fed’s determination to fight inflation.
That is, until Friday’s Bureau of Labor Statistics release of data, that showed May’s inflation for consumer prices was a record increase of 8.7%
Two months ago Chairman Powell in response to a journalist’s question said that a 3/4 point increase in the Federal Funds rate would be very unlikely. Wouldn’t be surprised if what was considered “unlikely” might become “likely” this month, or next.
Also, very few investors are paying attention to the dramatic slowdown that is occurring in China as a result of their Property Sector implosion and their zero tolerance coronavirus lockdowns.
Should be a very interesting week.