The Fed did a 50 basis point hike in February 1995 and then had to turn around and start cutting rates in July. The FOMC later framed that hike as an "insurance move" against inflation that never really materialized.
Those who do not learn from history are doomed to repeat it.
@jameslavish @LawrenceLepard @LynAldenContact
There's a tiny chance that they raise rates just to establish their bona fides and that turns out to be a really bad decision which leads to an emergency meeting down the road and a rate cut the likes of which President Trump wants
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Ah yes, that was in my early years of arbitrage, and I was still trying to figure out what exactly the Fed did.
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