Busy DC week from Fed rate increase to money for chips

The economic highlight of the week in DC was the action of the Fed’s FOMC to increase the base rate by 75bps. As has been the policy under Jay Powell the action was well-telegraphed and the markets had expected the increase.

At his press conference after the meeting Chair Powell was purposely evasive about future policy, making his core point that future action would be data-driven. The Fed, like most of DC, will take August off and the next FOMC meeting won’t be until September 20/21. A...

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