Did the Fed raise or cut rates?

Week ending Friday December 15th 2017 An apparently stupid question in our header this week. But the answer will be surprising to many. The Fed raised its target rate 25bps on Wednesday but rates, rates in the sense of those that matter, market rates, fell slightly. Bond yields across all maturities above 12m fell on the announcement.  The Fed action actually made “rates” fall. Asimilar phenomenon was seen in November in the UK on the most recent Bank of England rate “rise”. The bond market was saying that the Fed has moved too far too fast, saying it doesn’t believe…

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