Interest rate hikes rear their heads again. More of a squeak then a roar I guess. This means they are calibrating the money supply so as to find a level ground (I say platform if that level ground ends up being in the long run i.e. 5 or 10 years on a different performance level than the older market homeostasis/equilibrium).
The Fed is trying to figure out the impact of interest rates in a market that is not following standard market behaviors (I say its because there are factors we don't know and as our society shifts into more digital e-commerce the older economic assumptions may not actually be as accurate as before. Thus, new models will need to come forward but that depends on what our new homeostasis is post Covid. I'm just saying theoretically because really it is possible that nothing has changed and its just a wonky market. However, we have a lot of technological differences compared to what existed in physical form 100+ years ago when some of these theories came out during the Industrial Age. Our entire currency system is going online and that is just a different animal than coins or cash. Some economic model tweaking is necessary.)
This is a fabulous article in the Yahoo Finance Fed's Powell: Rates will rise again in 2023, but at a slower pace. The author delves into the topic and does some solid analysis.
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