Attention Economy


Tuesday, June 14, 2022

A 75-Basis Point Rate Hike is Almost Certain

Bloomberg’s John Authers notes:
https://www.bloomberg.com/opinion/articles/2022-06-14/the-fed-has-no-choice-but-to-let-this-bond-market-tantrum-rip
It’s probably best to try reading the New York Times, Bloomberg News, Axios or the Wall Street Journal, all of which published stories about the likelihood of a 75-basis-point hike as the afternoon progressed. None of these stories feature any on-the-record comments from Fed officials since the inflation data came out in Friday. However, they are all framed the same way, and lead the reader through the same comments made before the quiet period that had given the Fed some wiggle room to raise by more than 50 basis points. We can assume that this was a coordinated attempt to guide the market through trusted journalists, while just about staying in purdah. This is one of those times when you can believe what you read in the papers — the Fed has now set everyone up for a 75-basis-point hike on Wednesday. Anything else would be a huge surprise. The story, breaking first in the Wall Street Journal, arrived in time to accelerate what were already dramatic market moves”.
 
Related:
https://www.nytimes.com/2022/06/14/business/economy/federal-reserve-rates-economy.html