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Technology Stocks : Semi Equipment Analysis
SOXX 316.33+1.3%Dec 10 4:00 PM EST

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From: Return to Sender3/29/2022 9:33:12 AM
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From Bespoke Investment Group LLC:

Earlier this month, Fed Chair Jerome Powell raised the lower bound of the Federal Funds rate from 0% to 0.25%. It was the first time the Fed tightened monetary policy by hiking interest rates since the pandemic began in 2020.



With inflation running extremely hot for months now and the Fed signaling that it plans on raising rates as much as it needs to in order to tame inflation, futures markets are pricing in a huge amount of further tightening over the next 12 months. Based on Fed Funds futures pricing, the chart below takes a look at the path that "the market" expects the Fed Funds rate to take from here through next March. As shown, the market currently expects Powell to hike rates by 50 basis points in each of the next three meetings through July followed by five consecutive 25 basis point hikes beginning in September 2022

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