Dollar Reigns Supreme
Sep 23, 2022
• 4
Min Read
Author
Fed Raised Rates Above Futures
This week, the Fed went ahead and raised interest rates another 75 bps in its attempt to stimy demand and bring down the prices of consumer goods. While the rate hike was already priced in by the market, the Fed’s revised dot plot was not. The Federal Reserve’s forecast for rates (green line below) was well above the futures market expectations. Thus, asset prices continued to dive, crypto included. The S&P 500 would go on to close at a new YTD low.
The CPI print and subsequent Fed actions have led to an increase in correlations between crypto ...