The Federal Reserve increased interest rates 75 basis points (0.75%) yesterday. It was 28 years ago since the Fed increased the interest rate that much. The 30 year home mortgage fixed rate is now 6.28%.
The stock market rallied on the news as the market feels the Fed has finally gotten serious about controlling inflation.
Fed Chairman Powell said more rate increases are coming in the next few months. He predicted the inflation rate will be back down to 2% in 2024.
He needs to read the history of the inflation balloon of the 1970's into the '80's... 2% inflation rate is 5 to 10 years away, depending on the aggressiveness of the inflation control program. But then, if the Fed and Biden handlers crash the economy, we could see 2% deflation next year.
Yesterday morning, the USDA announced the cancellation of a sale of 100,000 mts of old crop soybeans to unknown buyer.