The market now believes that the Federal Reserve must raise interest rates significantly, and the risk of a 50 basis point rate hike at next month's meeting is increasing, and the terminal interest rate may reach 6.5%.
The source of the market's discussion about a 50bp rate hike came from Mester's speech on the 16th. Then Mester said two days ago:
This month's CPI is likely to be lower than expected. I will calculate the specific figures on Friday. I think I don't need to prove this to others, just for your information.
Let me say this for the last time: good economic data is not bad news for the stock market, nor is it a basis for raising interest rates. The Federal Reserve has a grudge against high inflation, but not against a good economy. This is a country, and what we ultimately want is a positive real GDP.
