Fed raises interest rates by highest percentage in 28 years. After weeks of speculation, the Fed raised its benchmark interest rate by three-quarters of a percent, the largest rate hike since 1994. The aggressive rate increase ends years of loose monetary policy that the Fed has used to try to curb historically high inflation. The Fed also lowered growth expectations for this year.
TPC POV: After a suspiciously well-timed WSJ article, it became increasingly clear that the Fed would raise rates by 75 basis points. There are many components to the inflation story, but we believe this is another step in the right direction. What’s next? When will be the recovering for Ordinary stocks in Dow Jones.