0.75 Rate Hike Gets Thumbs-Up From Investors

Motley Fool Money

The Motley Fool

Business, Investing

4.4 • 3K Ratings

🗓️ 15 June 2022

⏱️ 22 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

The Federal Reserve raised interest rates three-quarters of a percent, the biggest hike since 1994. (0:25) Ron Gross discusses:
- The positive reaction in the stock market
- Prospects for much lower inflation in 2023
- Borrowing costs going higher
- Expectations for more rate hikes later this year

(11:40) Asit Sharma talks with Pubmatic CEO Rajeev Goel about why his company is becoming more predictably profitable, and the growing opportunity in connected TV.

Got a question? Drop an email to [email protected]!

Stocks discussed: PUBM, PG, WPP

Host: Chris Hill
Guests: Ron Gross, Asit Sharma, Rajeev Goel
Producer: Ricky Mulvey
Engineers: Dan Boyd, Brandon Gentry

Transcript

Click on a timestamp to play from that location

0:00.0	It's the biggest interest rate hike since 1994.
0:08.8	What it means for businesses is coming up next.
0:11.8	Motley Fool Money starts now.
0:22.1	I'm Chris Hellen.
0:23.1	I'm joined by Motley Fool Senior Analyst Ron Gross.
0:24.9	Thanks for being here.
0:25.9	Yeah, my pleasure, Chris.
0:27.9	Let me timestamp this because normally we record this podcast earlier in the day.
0:33.6	It is 249 pm on the East Coast and we are recording much later than usual because of
0:42.3	the Fed, because at 2 o'clock this afternoon, the Fed came out with what we thought was
0:49.2	going to happen, which is always comforting, I find, with the Fed coming out and saying,
0:54.8	we're raising interest rates 0.75%.
0:59.5	I think that's what most people were expecting and what most people were looking for.
1:03.6	The headline, of course, is this is the biggest rate hike in 28 years.
1:08.9	We'll get into some of the particulars in a minute, but I couched that by saying most,
1:13.4	is this what you expected as well?
1:15.1	The market had a 95% chance.
1:18.8	It had placed that bet that it would be 75 basis points.
1:23.4	So as I said to our chief investment officer this morning, the safe bet is that 75%
1:28.6	basis points will be the number we said back and forth.
1:33.5	If it's 50 basis points, the market's going to be down 4%.
1:36.9	If it's 100 basis points, then you're up to the whims of the market because you can
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from The Motley Fool, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of The Motley Fool and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.