{"id":40825,"date":"2018-11-22T07:18:54","date_gmt":"2018-11-22T12:18:54","guid":{"rendered":"http:\/\/olduvai.ca\/?p=40825"},"modified":"2018-11-22T07:18:54","modified_gmt":"2018-11-22T12:18:54","slug":"rates-on-their-way-to-10-year-high-after-hawkish-feds-recent-meeting","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=40825","title":{"rendered":"Rates on Their Way to 10-Year High After Hawkish Fed\u2019s Recent Meeting"},"content":{"rendered":"
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Rates on Their Way to 10-Year High After Hawkish Fed\u2019s Recent Meeting<\/a><\/h3>\n<\/div>\n<\/div>\n<\/section>\n
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\"hawkish<\/p>\n

Round and round we go, where the hawkish<\/a> Fed stops, nobody knows\u2026<\/p>\n

There was a bit of tension in the markets last week. This tension stemmed from a prediction that the federal funds rate would be well on its way to a decade high even if the Fed did nothing<\/em> at their November meeting.<\/p>\n

Well, that concern has been justified. In a statement<\/a> issued after the meeting, the Fed kept their funds rate at 2 \u2013 2.25%, the same range after their September meeting.<\/p>\n

But nothing in their statement indicated changes in their plan for another rate hike in December and three more in 2019.<\/p>\n

In fact, a CNBC article<\/a> points to a quarter point increase in December. Assuming this happens, that would send the funds rate to its highest since 2008 (see chart<\/a> below):<\/p>\n

\"us<\/p>\n

The primary credit rate remained steady at 2.75%<\/strong>, according to the Fed statement. That is, until December\u2019s anticipated rate hike.<\/p>\n

Another CNBC article<\/a> published just before the meeting statement was released had a telling statement (emphasis ours):<\/p>\n

In recent weeks, financial markets have been gripped by worry and volatility, and some analysts think that in its statement Thursday the Fed may take note<\/strong> of that anxiety as a potential risk to economic growth.<\/p><\/blockquote>\n

The \u201cNo comment\u201d response<\/a> by the Fed didn\u2019t seem to acknowledge this anxiety.<\/p>\n

But the market sure seems to be in a state of worry. Since October 3rd, the Dow Jones<\/a> has lost 1,566 points as this is written (even after modest recovery).<\/p>\n

And the Yield Curve Keeps Flattening<\/strong><\/p>\n

In July, the Fed stopped<\/a> highlighting the yield curve as an indicator of an imminent recession. Instead, they swept it under the rug.<\/p>\n

But according to Patti Domm<\/a>, the market is still paying attention to it:<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Rates on Their Way to 10-Year High After Hawkish Fed\u2019s Recent Meeting Round and round we go, where the hawkish Fed stops, nobody knows\u2026 There was a bit of tension in the markets last week. This tension stemmed from a prediction that the federal funds rate would be well on its way to a decade […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[18769,964,303,6230,431,16888,534,3650,10388],"class_list":["post-40825","post","type-post","status-publish","format-standard","hentry","category-economics","tag-birch-gold-group","tag-cnbc","tag-fed","tag-federal-funds-rate","tag-interest-rates","tag-jerome-powell","tag-monetary-policy","tag-us-federal-reserve","tag-yield-curve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40825","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40825"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40825\/revisions"}],"predecessor-version":[{"id":40826,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/40825\/revisions\/40826"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}