The data are all good, why does the Fed still want to raise interest rates by 25 basis points to 5.5?
The purpose of this rate hike is for US bonds. The inversion of long-term and short-term US bond yields is getting more and more serious. This is the most representative indicator of the US economic recession. Therefore, the US bond ceiling was lifted in June, and it can continue to borrow. At the same time, the price of US bonds must be controlled not too high or too low. It is necessary to prepare for future interest rate cuts and leave enough room for future bond sales. This is also the reason why US officials have visited China one after another, wanting China to purchase 1 trillion US bonds to extract liquidity. This has been mentioned in previous posts.
The Fed continues to raise interest rates while inflation, employment and consumer confidence indexes are still good. Now it is still talking about the 2% inflation target. This is also the doubt of most people. For the Fed, data expectations are their tools for cutting leeks! Continuous issuance of bonds to extract market liquidity has also made the currency circle stagnant! #荣耀时刻