Build CIO, Matt Dines, CFA, was a guest on the Gaining Perspective podcast, discussing his three takeaways from the Fed rate hike announced in March 2022.
As expected, on March 16, the Fed signaled its intention to hike the Fed Funds rate by 25bps. My guest today, Matt Dines, the CIO of Build Asset Management, sees three big takeaways from its report. First, the Fed’s guidance on the path of the policy rate telegraphed its commitment to addressing the rising price levels afflicting the economy. Second, the FOMC’s guidance on the Fed Funds rate joined other key and important rate curves in the global financial system in inversion – i.e., the level for longer-dated maturities lies below those that come before them. Third, the strong rally across financial assets after they digested the FOMC’s report was an understanding that the “Fed Put” will be in play the next time trouble arises.
Listen to the podcast episode here: https://www.advisorperspectives.com/podcasts/2022/04/08/what-fed-policy-means-for-the-markets