ZIRP Archives - Cboe Blogs

  • Education | Strategy | Dec 22, 2015, 10:52 AM

    Did the Fed Rate Hike Remove Uncertainty?

    Did the Fed Rate Hike Remove Uncertainty?

    If you believe that first move following the first Fed rate hike in nine years, then you believe the market was relieved exhaling.  In a perverse way, the market seemed to be applauding tightening of policy, which is counter to what we have seen for years.  Sure, the near zero interest rate policy (ZIRP) is still in effect, but the irrational behavior is quite remarkable.  While the overall monetary policy is accommodative, a removal of access via higher rates is hawkish behavior -[...]