The Federal Reserve administered its biggest rate hike in 22 years as it raised the fed funds rate by 50 basis points. And in response, the stock market had its best day in two years, with the S&P 500 gaining almost 3%
The dollar is strong, very strong. It’s far ahead of its long-term course to an extent that hasn’t been seen in years. The Wednesday selloff had virtually no effect on this
John Authers Bloomberg 5 May 2022
The Fed causes gyrations in financial markets
Investors are still betting that America’s interest rates will peak at a little over 3%. That is unlikely to be high enough to rein in underlying inflation, which has risen above 5% on the Fed’s preferred measure.
More pain lies ahead.
The Economist editorial 4 May 2022