Flee the Storm as It Gathers
For the fourth consecutive meeting, the Federal Reserve Open Market Committee elected to raise overnight interest rates by 0.75%, this time to a range of 3.75- 4.00%.
Superlatives have grown tiring. This remains the fastest pace of rate hikes since the early-1980s; the highest level of overnight rates since the mid-2000s; and only the fourth time in the entire history of the central bank that the Fed has tightened more than a quarter point so persistently. Interest rates are now clearly at a level that puts the brakes on the economy, and a 2023 Fed-induced recession is highly probable, as the real economy is only now experiencing the effects of early2022 interest rate hikes.
This report is produced by the Janney Investment Strategy Group (ISG). It is the intellectual property of Janney Montgomery Scott LLC (Janney) and may not be reproduced, distributed, or published by any person for any purpose without Janney’s express prior written consent. This report is to be used for informational purposes only. In no event should it be construed as a solicitation or offer to purchase or sell a security. The information presented herein is taken from sources believed to be reliable, but is not guaranteed by Janney as to accuracy or completeness. Any issue named or rates mentioned are used for illustrative purposes only, and may not represent the specific features or securities available at a given time. Preliminary Official Statements, Final Official Statements, or Prospectuses for any new issues mentioned herein are available upon request. The value of and income from investments may vary because of changes in interest rates, foreign exchange rates, securities prices, market indexes, as well as operational or financial conditions of issuers or other factors. Past performance is not necessarily a guide to future performance. For investment advice specific to your situation, or for additional information on this or other topics, please contact your Janney FA and/or your tax or legal advisor.
About the author
