💡 what happened yesterday with the fed (and powell)?

• the fed announced a .75% interest rate hike

  • us equities, especially tech shares soared after the news at 2pm during the day, as a lot of uncertainty was resolved because 0.75% was the overall consensus

  • that puts the benchmark lending rate at 2.25% - 2.5%

  • fed chair jerome powell said more increases could be "appropriate" in the future, maybe even another hike just as big as this time, but that's a little later into the future, so that's for a later time

• powell also said:

  • "I don't think the economy is in recession right now," rejecting speculation that the us economy is in recession

⏰ well, 18 hours later…

• q2 us gdp was released, and no, powell, we are in recession

  • real gdp decreased at an annual rate of .9% in q2, which makes it two consecutive quarters of declining gdp

  • now, that’s a popular definition of a recession…

  • the consensus estimate was an increase of .4%!

💡 something im thinking about

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as always, i am no financial advisor! (i am no substitute for professional financial services)