Mortgages, car loans, and credit card balances are all about to get more expensive. On Friday, futures markets crossed 50 percent probability of a Federal Reserve rate hike by year’s end. Not a cut. A hike. A year ago the debate was how fast the Fed would lower rates. Now traders are betting rates go back up. Voters punished inflation once in 2024. The market is signaling it is not done.
Jerome Powell told reporters after the March meeting that “nobody knows” what happens next. When the Fed signals it does not know, markets do the panicking for them. That is how uncertainty becomes crisis.
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