Re:Fed Ends Zero-Rate Era
by dragonwriter on Wednesday December 16, 2015 @03:47PM
(#10747204)
> Fed raising interest rates 0.25% and setting a goal of "normal" 2% by 2018 means little to nothing. Market already priced the miniscule rate hike in as the move was widely expected
The second part is true, but doesn't support the first. The fact that move was expected and priced in doesn't make it meaningless, since if it didn't occur as expected, the fact that it was priced in would mean that the market would then have to adjust to the inaccurate expectation that had been priced in.
The second part is true, but doesn't support the first. The fact that move was expected and priced in doesn't make it meaningless, since if it didn't occur as expected, the fact that it was priced in would mean that the market would then have to adjust to the inaccurate expectation that had been priced in.