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I think you might find it to be the opposite, a 1% "shock" hike...

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    I think you might find it to be the opposite, a 1% "shock" hike is more likely to be taken as a positive as it is more likely to mean a lower terminal rate which means less subsequent hikes.

    Recent data has convinced the market inflation is persistent, there is no going back on that now. The sooner the market believes the Fed has broken the back of that, the sooner markets can move on from the interest rate hike story. A 0.75% hike doesn't do that.
    Last edited by convexity: 21/09/22
 
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