Fed Rate Hike and Retirement Income | Dupree Financial Group

So to get started, we got a ton to talk about.

We just had the FOMC meeting.

That's the

Federal Reserve.

Yeah, the Federal Reserve.

And they decided to raise interest rates by 25 basis points worldwide.

What does that mean, you know, the bond market? What does that mean? Just what do you guys think?

Yeah, so on Wednesday, they raised by a quarter of a point, 25 basis points.

And the market had already priced in that expectation.

It was, you know, a 90% chance that they were going to raise rates.

Warsh...

Warsh claimed his independence on Wednesday, I think, by raising rates.

The market, I think, generally viewed that in a positive light.

Yeah.

You didn't see much of a reaction in terms of on the yield curve.

You look at various, you know, the shorter end obviously came up a little bit.

But the 30-year treasury, I think it peaked at like a 5.398. And it's actually below that now.

So what the bond market is looking at is, okay, the Fed is taking inflation seriously.

Now, some of Warsh's comments on what they look at, you could make the case that, well, maybe they shouldn't have raised rates just based on the numbers that they were seeing, but he did raise rates.

It was kind of a non-event in terms of rates.

The market, you know, you've really...

The market itself, I think, was priced in, and it's a continuation of what's been going on since mid-August, really, which is the general rise in rates because the market saw through and it was anticipating, but it's also tied to oil prices.

Everything will always be tied to oil prices in our lifetime.

We've talked about it many times on the show.

what Warsh was really saying via the rest of the members on the committee.

So to get started, we got a ton to talk about.

We just had the FOMC meeting.

That's the

Federal Reserve.

Yeah, the Federal Reserve.

And they decided to raise interest rates by 25 basis points worldwide.

What does that mean, you know, the bond market? What does that mean? Just what do you guys think?

Yeah, so on Wednesday, they raised by a quarter of a point, 25 basis points.

And the market had already priced in that expectation.

It was, you know, a 90% chance that they were going to raise rates.

Warsh...

Warsh claimed his independence on Wednesday, I think, by raising rates.

The market, I think, generally viewed that in a positive light.

Yeah.

You didn't see much of a reaction in terms of on the yield curve.

You look at various, you know, the shorter end obviously came up a little bit.

But the 30-year treasury, I think it peaked at like a 5.398. And it's actually below that now.

So what the bond market is looking at is, okay, the Fed is taking inflation seriously.

Now, some of Warsh's comments on what they look at, you could make the case that, well, maybe they shouldn't have raised rates just based on the numbers that they were seeing, but he did raise rates.

It was kind of a non-event in terms of rates.

The market, you know, you've really...

The market itself, I think, was priced in, and it's a continuation of what's been going on since mid-August, really, which is the general rise in rates because the market saw through and it was anticipating, but it's also tied to oil prices.

Everything will always be tied to oil prices in our lifetime.

We've talked about it many times on the show.

what Warsh was really saying via the rest of the members on the committee.