Why did the Fed raise rates and why is it such a big deal? I'm Monica Perez and this is today's deep dive.

Here's today's diving board. It's a front page article from the Wall Street Journal.

Top Story right on the front page. The Fed sets biggest rate rise since 1994.

So the Fed raised rates three quarters of a point

to range between 1.5% and 1.75%.

And they expect to keep raising the rates

until some estimates are 3.75% by the end of 2023.

That's what they say, but they haven't been very accurate

in what they've been saying.

So that's why the market really didn't know how to respond. At first they

rallied on Wednesday probably because there was supposed there was some clarity in

the information. Powell said this would be an unusually high rate raise

although he did feel like it may be another whole three quarters of a percent at

their next meeting in July, but for some reason the

market liked it on Wednesday and hated it on Thursday. So I don't know what it'll do

today, but it was up and then down again.

So there's a lot of volatility there.

People are worried.

I think for me, what I think happened was

they were happy with the clarity,

but then it sank in that really they're probably

gonna get a recession which doesn't surprise me at all and I'm gonna tell you what that

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