Originally Posted by
BoilerUP
75 basis points is “small”?
I wouldn’t be surprised at another 75 basis points in July.
Kind of like not too distant future. The neutral Fed funds rate is in excess of 6% based on current inflation rate and in order to lower inflation, the Fed has to go beyond the neutral rate. If they do 75BPS every Fed meeting, it's going to take a very long time to get above neutral rate. I'd prefer to see a few increases of >100BPS to get the inflation rate down.