I know some are calling for rate cuts, others for 50 bps, but I’m guessing we just see another boring 25 bps rate hike, followed by some comments about how inflation hurts everyone, and they will stay the course until the job is done.
Discussion
It doesn't take too many 25 point rate increases to reach a tipping point where suddenly a whole bunch of derivatives become worthless and everything comes crashing down.
So you thinking no increase?? If Powell do not increase he shows that the economy is in trouble! I don’t think he will give such sign! Just 25 point is the easiest way to buy time. I think!!!
Honestly I dare not even speculate what will happen. I think you're right, and what I see happening is them doing whatever will keep people from freaking out and running to the bank for their money faster than they can justify printing it . In fact bank runs have been happening for a couple of years I think.