Rates Higher For Longer Says The FED, But Who You Going To Believe?

So the FED hiked again, and lifted the expected terminal rate to above 5% with the majority of board members agreeing this this projection.

So, the markets and the FED are now not on the same page, with traders still betting on lower rates during 2023.

In addition, a slowing growth rate and higher unemployment means future earnings will be lower, suggesting that markets are over optimistic.

Things are as they say, complicated.