Stocks fall as Wall Street braces for huge hike in rates

Sven

Prices at the consumer level were 9.1% higher last month than a year earlier, accelerating from May’s 8.6% inflation level. That also was worse than economists’ expectations for 8.8%.

This will ensures 75 bps rate hike in July. Previous sighting of inflation peaking did not panned out.
https://msn.com/en-us/money/markets/stocks-fall-as-wall-street-braces-for-huge-hike-in-rates/ar-AAZw2O6?li=BBnb7Kz

WABAC

As John Paul Jones might have said if he were on the Fed board: "We have not begun to huge!"

I only have one well-remembered bout with inflation. No one came up with a quick and painless solution then. I don't expect one now.

Sven

From an earlier posted by @yogibb earlier,
Fed fund futures market is going haywire showing 80% for 100 bps, followed by 75, 25, 25 to end at 3.75-4.00% in December.
https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html

Keep your seatbelt on. It is going to be a rough ride.

Observant1

Yep, I expect heightened volatility in the months ahead.

Derf

I'm going to stay with 75bps. They're trying to keep their credibility in place.