Once More into the Breach

by Guy LeBas May 3, 2023
Once more into the breach, dear friends, once more: the Federal Reserve Open Market Committee raised its target for overnight interest rates by 0.25% to a range of 5.00–5.25%, capping a total of 5.00% of tightening in little more than a year.

But hiking rates in the face of slowing inflation, a dubious growth outlook, and obvious banking stresses is not the sort of thing that ends with epic histories. Jay Powell is about the furthest thing one could imagine from a poetic Henry V leading his troops into battle, and elevated inflation is no Hundred Years’ War.

 

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About the author

Guy LeBas

Director, Custom Fixed Income Solutions

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