Re:Why doesn't the Fed just hike 200bp all at once?
by soganess on Tuesday July 26, 2022 @08:45PM
(#32245767)
I'm interested in knowing this as well!
Maybe because, from the purview of the some parts of the market, saying you are going to raise it is the same as raising it?
I'll be the first to admit that I'm not knowledgeable in these matters, but from the naive perspective, If I was considering market movement I would package in the higher interest rate into my decisions.
As an example, if I was a bank manager that knew the interest rate were going up, I would preemptively advertise higher rates on my loans.
Maybe because, from the purview of the some parts of the market, saying you are going to raise it is the same as raising it?
I'll be the first to admit that I'm not knowledgeable in these matters, but from the naive perspective, If I was considering market movement I would package in the higher interest rate into my decisions.
As an example, if I was a bank manager that knew the interest rate were going up, I would preemptively advertise higher rates on my loans.