New Normal of the American Economy
On Wednesday, the Fed approved a new interest rate hike of 75 basis points for the third time in a row, pushing the Central Bank's benchmark rate to a new target range of 3%-3.25%. This is the highest federal rate since the 2008 financial crisis. Fed Chairman Jerome Powell delivered a message in line with his Jackson Hole remarks, reaffirming his mission to fight inflation to the 2% target. 2-year and 10-year Treasury bond yields came in at 4.16% and 3.72% respectively, inverting the yield curve between rates at -45 basis points.