With just a few days left until the highly anticipated FOMC meeting on July 26th, traders, analysts, and markets have priced in a 99.8% chance of a 25-basis point increase in the Fed funds rate. That would push the rate up to 5.5%, an increase of 5.25% in just 16 months. The sharpest rate increase in 43 years. When we step back and look at the goal of these aggressive rate hikes, one could question if we have already achieved the goal.
To begin with, the Fed has a very clear dual mandate: Full employment and price stability.
