This past week, the Federal Open Market Committee (FOMC) announced its third consecutive 25 basis point rate increase this year.

The Fed has taken very aggressive action to tame inflation over the past 14 months, raising the federal funds target rate by 500 basis points since March 2022.

The Fed has a 100% track record… of going too far in a direction and then reversing and going too far in the opposite direction… They aren’t the smartest people in the room, they are bureaucrats.

As the following chart from Statista shows, this tightening cycle has been the fastest in more than four decades.

Material prepared by Sherman Portfolios, LLC. My commentary is in bold.

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