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25 sats \ 3 replies \ @faithandcredit 28 Jul 2022 \ parent \ on: Fed Hikes 75bps: Remains "Highly Attentive" To Inflation But Cautions ... bitcoin
I am hearing from several places that this rate hiking is suppoed to be bullish but i dont fully understand why. The pump today seems to confirm the narrative tho but lets see.
I suppose it's because 0.75 is the soft landing number, but I have a hard time believing it will do enough to curb inflation given what's going on in the world, so we'll see.
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The west has a century of experience as a market economy. Right now as a result of the inflation shock people are changing habits, saving, spending less, companies are optimizing harder, spending less, the next inflation number could be a surprise to the downside, but lets see.
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I think it's bullish because if they are hiking 0.75 it means they think they have this much room to continue to hike, meaning they are confident that the economy can absorb these interest rate levels and not tank.
Either that, or people think 0.75 is the last of the hiking and they are going to have to start cutting rates and doing QE soon enough, so people are front running the next Fed move.
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