The Fed raised interest rates for the 12th time yesterday, pushing Fed funds up another 25 basis points to 4.0%. Now what? More of the same, of course.
The central bank assured the world that “that policy accommodation can be removed at a pace that is likely to be measured.” That’s central banking-speak for: 25-basis points for as far as the eye can see remains the mantra for monetary policy, much as it’s been since the tightening began in June 2004.