The markets seem to be digesting the reality of higher rates. Simply, they are realizing there is not going to be a financial crisis.

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Rates are rising, sure. Some companies are facing higher borrowing costs. This is not going to make businesses shut their doors and file for bankruptcy. Really, higher costs for doing business means the more you have to charge customers.

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The Fed continues and must always face a tightwire on raising rates. Since the last three months have shown a plateau, it should show the Fed inflation is not accelerating. Plus, the six month lag effect from raising rates should start appearing in the months ahead.

Commodity prices are beginning to head down. Wholesale inflation pressures will begin abating. Inflation figures, in the upcoming months, will begin moderating.

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This is probably the last rate hike. I think they should pause and wait for next months numbers. Then they see if the trend is moving down from this plateau, of the last three months.