NASDAQ- Hikes Shmikes Nasdq should Rise

15 Jun 2022

I see support. going Long.

idea would be invalidated under 11300.

News: investing.com/news/economy/fed-raises-rates-by-075-as-rampant-inflation-forces-biggest-hike-since-1994-2837515

Fed Raises Rates by 0.75% as Rampant Inflation Forces Biggest Hike Since 1994

The Federal Reserve surprised markets on Wednesday with a larger than expected 0.75% rate increase as persistently high inflation compelled the central bank to deliver its biggest hike at a single meeting since 1994.

The Federal Open Market Committee raised its benchmark rate to a range of 1.5% to 1.75% from 0.75% to 1% previously. That was more hawkish than economists’ expectations for a 0.5% rate hike.

In the weeks leading up to the decision, Fed Chairman Jerome Powell said he wasn't “actively considering” a 0.75% rate increase and signaled that a 0.5% hike would be appropriate at the June and July meetings.

But several signs showing above-trend inflation could stick around for longer than feared forced the central bank to step up the pace of monetary policy tightening to prevent falling further behind in the battle against inflation.

The steeper than expected rate hike pushes the Fed closer to reaching the neutral rate – a rate that neither improves the economy nor slows it down. The Fed had previously signaled that it was eager to move “expeditiously” to a restrictive stance, above the neutral rate, to bring down demand and cool inflation.

Restoring supply and demand in the labor market is key to the central bank’s plans. A tight labor market in which there are about two jobs for every unemployed American – threatens to fuel a wage spiral that could push inflation beyond the Fed’s reach.

Some on Wall Street have suggested that job gains would have to reverse before the Fed considers taking a step back.

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