We were surprised by the consensus amongst Fed members, from their meeting last week, to raise rates by another .50% this year. What this does is to push yields up on the short end on the yield curve but surprisingly it has not pushed long-term rates up. We believe with the very inverted yield curve it will continue to negatively impact the banks. When interest rates are higher on the short-end, banks do not have much of an incentive to make loans.

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