Fed Raises Interest Rates by 0.75 Percentage Point for Third Straight Meeting – WSJ

We have got to get inflation behind us. I wish there were a painless way to do that. There isn t, Fed Chairman Jerome Powell said at a news conference after the rate decision.

Stock markets tumbled after a volatile trading day. The broad S&P 500 index fell 66 points, or 1.7%, to 3789.93. The yield on the two-year U.S. Treasury note settled around 3.993%, according to Tradeweb, from 3.962% Tuesday, nearly a 15-year high. Just after the Fed s announcement, it had touched as high as 4.12%. Meanwhile, yields on longer-term Treasurys fell, since higher rates could lead to a sharper economic downturn.

via www.wsj.com

You could have made some money buying S&P puts on the theory that this Fed really is going to increase rates, just as they have said. There was a foolish amount of money betting that they didn’t.