Fear The Talking Fed! Fed Raises Target Rate To 50 BPS, Still 11.50% Below The Taylor Rule (Dow Drops, 10Y Treasury Yield SPIKES)

So, The Federal Reserve raised their target rate by … as expected … 25 basis points to 50 basis points.

The Taylor Rule suggests that the target rate should be 11.96%. So, Powell and The Gang are getting closer! /sarc

The short-term reaction to the measly rate increase? The Dow declined (but still in positive territory for the day) and the benchmark 10-year Treasury yield spiked to 2.23%.

On Powell’s surrender to inflation, the US Treasury 10Y-2Y curve continued to flatten.

You can see The Fed’s sloth-like response to blood-curdling inflation in the lower right-hand part of the chart.

Here is what The Fed had to say. Kind of “We can’t fight inflation because Putin is invading Ukraine.”

One thought on “Fear The Talking Fed! Fed Raises Target Rate To 50 BPS, Still 11.50% Below The Taylor Rule (Dow Drops, 10Y Treasury Yield SPIKES)

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