Well on the surface it looks like the FOMC left interest rates alone. From a casual view this is true. To the informed person they are actually raising Commercial rates. The key is to understand what QT means, Quantiva Tightening and QE which most people do. During Covid. The Fed reserve pumped lots of Money, QE, into the commercial economy making interest rates drop simple reason, surplus money why pay more for it. In fact they pumped in nearly4 trillion of monopoly money which lowered things like home mortgages substantially, About a year ago they started QT. They do this by Selling the bounds back to public and using funds to clear the Fed reserve, not federal treasury deficit. Note it is all play money allowed by law the FED does not have to worry about payments. this decrease in the money supply means people that need money will have to pay more for it. So during QT which fed said the would accelerate, commercial interest rates will go up even if the fund rates is unchanged. if you want to know more you can also read how the Treasury issued bounds effect things. Also read about what types of assets the Fed reserve buys and sells to manipulate the money supply.
LYC Price at posting:
$6.25 Sentiment: Sell Disclosure: Not Held
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