Betting on the Feds to pull the handbrakes?

Now that the debt ceiling crisis is all but settled, another event around the corner is none other than the infamous Feds

Now the opinions from the grounds can be split. Inflation is still high and there are good reasons for the Feds to continue hiking the interest rates.

But here are some points to take note of for a sudden handbrake pull.

Some might  have forgotten that we just experienced one of the scariest financial meltdowns for some of the smaller banks in the US.

Although there are many collective reasons for their downfall, the rapid rise in interest rates played some role to it.

Continuing to rising rates might trigger more stress on the smaller banks.

Raising the interest rates can slow and reduce inflation.

But it does not do it overnight.

The economy and finance fundamentals are large and complicated matters that require time for things to revert back to normal levels.

It is not raising the rates rapidly in the hope of a sudden reversion to normal levels as well, without actually spoiling the broth.

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