If it seems that the Fed has been raising rates at a breakneck pace, then you’re not alone. Rates have been rising at the fastest pace since the 1980-81 cycle- that’s four decades! Rates have risen six times already this year, totaling 3.75%, with another meeting scheduled for December 13-14.
Yes, another rate hike is expected. The size of the increase is more of the speculation.
Read this excellent analysis of rate hikes from the Wall Street Journal (See link below). The informative reporting is supported by a multitude of graphs that provide context to the story. There is a great quote in the article-
Nobel Prize-winning economist Milton Friedman famously argued that “monetary actions affect economic conditions only after a lag that is both long and variable.”
Friedman contends that it takes time for the economy to respond to monetary actions like rate hikes. It remains to be seen how the economy responds to this tempo of rate hikes.
What is your take on the Fed actions of the current rate cycle? Let me know what you think! Click here to send me an email.
~ Brian Kasal- The Leadership Matrix
Click here- Fed’s Aggressive Rate Hikes Are a Game Changer
P.S.- Did you see my last Leadership Matrix post? How Competition may be the Rx needed for Lower Drug Costs