“98, 96- WE DON’T CARE; SEND US THE MONEY!”

Don’t Forget Velocity

On Wednesday the Fed, as expected, raised interest rates (FedFunds ¼% from 4.75% to 5%). Chairman Powell, in addition, claimed that if popular estimates that year end inflation would be down to 3% were true, that the next move from 5% FedFunds would be down not up. Curiously the move of interest rates since the Fed hike was not down, but UP.

We agree wit…