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How Markets Are Interpreting the Fed’s First Hike Since 2018

The Breakdown

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The Four Stages of Quantitative Tightening

Inflation moderating to four point three % by the end of this year, which is simultaneously, well above the previously projected fed rate. So in all this, ratehikes were expected. Remember, it was not, in fact, ratehike, but the threat of quantitative tightening, that got markets really spooked. The general framing of it in financial media sometimes posits it as a simple process of the fed selling assets back into market. That's actually only one stage of many.

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