Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date! Fed Update On Wednesday the fed hiked rates 75bps. This was expected. Prior to Wednesday, the consensus was a 75bps hike in November, 50bps hike in December, and 25bps hike in January. Initially the market moved up as some of the initial headlines suggested the Fed is starting to set themselves up for a slowdown in hikes. However, by the end of Powell’s press conference the market moved much lower. A couple things stood out. He said the data suggests they may ultimately move to higher levels (on rates) than they thought in the September meeting. He also made it very clear they will hike into a recession as their number 1 goal is curbing inflation (even at the expense of starting a recession). He also called out that if they do in fact hike into a deeper recession they could “use their tools to respond if they overtighten” (paraphrased quote).
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Clouded Judgement 11.4.22
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Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date! Fed Update On Wednesday the fed hiked rates 75bps. This was expected. Prior to Wednesday, the consensus was a 75bps hike in November, 50bps hike in December, and 25bps hike in January. Initially the market moved up as some of the initial headlines suggested the Fed is starting to set themselves up for a slowdown in hikes. However, by the end of Powell’s press conference the market moved much lower. A couple things stood out. He said the data suggests they may ultimately move to higher levels (on rates) than they thought in the September meeting. He also made it very clear they will hike into a recession as their number 1 goal is curbing inflation (even at the expense of starting a recession). He also called out that if they do in fact hike into a deeper recession they could “use their tools to respond if they overtighten” (paraphrased quote).