As we previewed yesterday the US Fed last night raised rates by 0.25% to tackle rampant inflation. Big deal right? However markets reacted strongly because the same markets who have been pricing in 7 rates hikes this year were surprised when…. the Fed agreed!! Yep, the Fed is now openly forecasting a rate hike at every one of its remaining 6 monthly meetings this year. Buy the rumour sell the fact saw shares rip higher, the USD falling and the yield curve flattened like a pancake. Gold called BS on it all and rallied. The problem locally is the AUD rallied too and took all those gains…. For now…
