The Day is Finally Here - FED rate hike 0.25% or 0.50%

welsonwoon
2022-03-16

Based on my 2 cents macroeconomic understanding rate hike is to fight inflation. While war has created a lot uncertainty and indirectly increase the inflation rate. But good news come just before the rate hike which 5th rounds of negotiations going around Russian and Ukraine; Oil price start dropping back to previous price level which has simulate the share market rise yesterday. It seems like market's are confident in this matter. But I truly sure that no one in this world likes war, especially Russia. As due to the action of cause, their economy may downturn few years back compare to other countries due to sanctions. 


Back to the rate hike, i think it is a good time for FED if I were Powell i will choose to increase a 0.50% instead of 0.25% to pass it back to retailer or market. In fact this is a strategist timing to do so when there's a good news in the market to digest the bad news and not as bad as double bad news announce it at once. Anyway, this is just some of my point of view to the market. And wishing everyone enjoy my article and encourage me to writeore. 

$Bank of America(BAC)$$SPDR S&P 500 ETF Trust(SPY)$$Invesco QQQ Trust(QQQ)$

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  • Remotecam
    ·2022-03-20
    Putin does not support the war negotiations, calling those who want to end it as Russian traitors. China does not get involved, but also does not condemn it.   I don't see it ending soon.
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  • ijiji
    ·2022-03-16
    markets looking up again. still research on effect of interest rate
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  • N00b
    ·2022-03-16
    Banks will likely gain
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  • Maria_yy
    ·2022-03-16
    Yes, I hope the negotiation will have a good outcome.
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  • MortimerDodd
    ·2022-03-16
    A rate hike of 25 basis points has been confirmed.
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  • tinkie
    ·2022-03-16
    In the case of raising interest rates, US stocks rose sharply.
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  • WillsonToh
    ·2022-03-17
    [Cry]
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  • sky老夫子
    ·2022-03-17
    加油
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