InvestorQ : Do you see any impact of the Fed hiking rates by 50 bps?
sara Kunju made post

Do you see any impact of the Fed hiking rates by 50 bps?

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Mary Joseph answered.
2 weeks ago
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Fed went as per its commitment and hiked rates by 50 bps, the biggest single move on the upside since year 2000. With inflation at 8.5%, Jerome Powell had already made a commitment that Fed would hike rates by 50 bps in May. The CME Fedwatch also indicates that the Fed rates would get closer to 2.7% to 3% by end of 2022.

On the bond unwinding, Fed has committed to roll out in June, albeit with a lower amount of $47.5 billion for 3 months, post which it will be upgraded to $95 billion per month.

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