Summary
Facing 8.6% inflation, the Fed raised rates by 75 basis points — the largest single increase since 1994 — surprising markets that had expected 50bp. The decision signalled the Fed was prepared to inflict economic pain to defeat inflation, referencing the Volcker era explicitly.
The rate decision, the CPI data that prompted the larger move, and what more 75bp hikes would mean.
Analysis of whether Powell will follow Volcker's example and maintain high rates until inflation is conclusively defeated.
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