MM070: Biggest Fed rate hike since 1994. But are they making a mistake?

Yesterday the US Federal Reserve hiked interest rates by 0.75% in another hawkish pivot in their on-going quest to tame inflation. They also said they intend to raise interest rates a further 1.75% across their remaining four meetings in 2022

We discuss the market fallout in the aftermath of this Fed announcement as stock markets initially bounced as Powell said he did not expect adjustments of 0.75% to become common.

However, this morning the risk-off continues:

The S&P hits bear market territory down 23% from its November 2021 high. The Nasdaq is now down 33%. The US Dollar continues to rally testing the 1.04 handle vs the Euro, GBPUSD hits a 20 month low and USDJPY is trading at a 20 year high.

We finish with a discussion about the recent cryptocurrency capitulation and discuss the best mindsets around how to deal with trades that are losing you money.

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