A Hike Like No Other
We hate to drone on about a Fed rate hike, but we want to stress the risks in the Fed's 25bps hike, as it is unlike any other hike we have seen in over thirty years. Let's contrast it with every Fed hiking cycle since 1994. 1994: Inflation was trending higher, and already 0.8% above the Fed's 2% target, and economic growth was running 1.50% above trend. 1997: Like 1994, inflation and economic growth were running hot. 1999: Inflation was tame, but GDP growth was nearly 3% above trend. Surging stock prices and an overheating economy rightly raised inflationary concerns. 2004: Inflation was…
The skinny
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