June 22, 2022

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

The Must See Chart

Please click here for a chart of the Fed funds rate going back to 1972.

Note the following:

• The most important point for the markets right now is the terminal Fed rate.  The second most important is how fast the Fed gets to the terminal rate.
• The chart shows the Fed funds rate at different times in history.  The take away from the chart is that there is a historical precedence for the terminal rate going much higher than what is discounted in stock prices right now.