• Log in
  • Get Started
ResearchWatch: The Titan Flash on Wednesday's historic interest rate hike

Watch: The Titan Flash on Wednesday's historic interest rate hike

Jun 17, 2022

Grace, from your Investor Relations team, covers the Fed's historic interest rate hike.

Last Friday’s inflation report was a lot worse than expected, as consumer prices accelerated by 8.6 percent in May. This was the fastest growth rate since 1981. Consensus following the data was clear: the Fed needed to do something drastic to curb prices, and fast.

On Wednesday afternoon, Fed Chairman Jerome Powell elected to raise interest rates by three quarters of a percent. The change is the largest interest rate increase in 28 years and is an aggressive move to anchor inflation back to its 2% target. The move strays away from the Fed’s traditional 25 basis point pattern… but then again, the current state of the economy is anything but traditional.

The Federal Reserve’s north star is taming inflation and we think Wednesday’s move is a good start. Why? Because by raising rates, the cost of borrowing money is higher. Higher interest rates make consumers and businesses hold off on making large purchases, thereby cooling off demand and theoretically calming prices.

Interest rates have already doubled this year, and they’re not done – the market is currently projecting that rates will double again by year’s end.

The Fed’s role can only really control the demand side of the equation. Their ability to get inflation under control is highly dependent on the unknown - where supply goes from here.

Let’s not forget record high energy prices spurred by the War in Ukraine, a persistent covid hangover and a stalled supply chain aren’t doing anyone any favors. And three quarters of a percent is supposed to solve all of that? We’ll see.

Fed Chair is a job we do not envy – to lower inflation, keep the economy out of a recession all while limiting job losses is an equation that is far from easy. We think Wednesday's move is a step in the right direction, and we’ll be following closely.


Smart Cash

Managed Stocks

Automated Stocks

Automated Bonds



Venture Capital

Real Estate

All Strategies


© Copyright 2023 Titan Global Capital Management USA LLC. All Rights Reserved.

Titan Global Capital Management USA LLC ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept and agree to Titan’s Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.

Please refer to Titan's Program Brochure for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Titan. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested, including principal. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members of FINRA/SIPC. For more information, visit our disclosures page. You may check the background of these firms by visiting FINRA's BrokerCheck.

Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.

The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.

Cryptocurrency advisory services are provided by Titan. Cryptocurrency trading is provided by Bakkt Crypto Solutions LLC ("Bakkt Crypto"). Bakkt Crypto is not a registered broker-dealer or a member of SIPC or FINRA. Cryptocurrencies are not securities and are not FDIC or SIPC insured. Bakkt Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency execution services are provided by Bakkt Crypto (NMLS ID 1828849) through a software licensing agreement between Bakkt Crypto and Titan. Please ensure that you fully understand the risks involved before trading: bakkt.com/disclosures.

Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.

Contact Titan at support@titan.com. 508 LaGuardia Place NY, NY 10012.