The Fed Didn’t Hike Rates. The Market Did.

The Fed didn't hike rates last week. The market did.

By the close of business the day before Kevin Warsh's decision, traders had priced in a 90%+ chance of a rate hike. Bank of America's own strategist put it plainly: at that point, NOT hiking would have been "nearly unprecedented."

So, Warsh delivered exactly what was priced in. He then held the shortest press conference of any Fed Chair on record, gave zero forward guidance, and allowed no follow-up questions. All in the name of a new communication philosophy he laid out back in June.

The result was the same outcome markets would have gotten under the old regime. Which raises the question we dig into this week: who's really setting policy here?

We also look at something more important than the theatrics: the Fed choosing to fight oil-driven inflation with a demand tool. What happened the last three times a Fed Chair tried that during an energy shock?

Read more here: https://insightwealthgroup.com/the-weekly-insight-the-fed-didnt-hike-rates-the-market-did/