December 2022 update - Why is the market surprised
The U.S. Federal Reserve raised rates by 50 basis points yesterday. This marks a step down from its previous hike which was 75 basis points, yet it was still higher than the market had anticipated, hoping the Fed would do only a 25 basis point hike. As noted previously, inflation appears to have peaked in the U.S., so traders think that the Fed is very close to being done with rate hikes and might even start cutting rates near the end of 2023 to stave off a recession. But, in