Over the last 40 years, only 8% of the 65 rate hikes were greater than 0.5%. Yesterday was one of them.
They fed is aggressively raising rates in order to cool down destroy demand so that inflation will come down. Every asset class is impacted by inflation, but only one can call inflation its kryptonite, and that’s bonds. Rising prices erode the value of your fixed coupons, and therefore, prices of existing bonds…
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