The First Rate Hike Since 2023 (Weekly Roundup)
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The Fed raised rates a quarter point to 3.75%–4.00% on Wednesday, the first increase since 2023, unanimously, with 16 of 18 officials now projecting at least one more before year end. But the decision was expected and the thing underneath it was not. The 10-year Treasury finished the week above 5%, and the 2-year reached its highest level since mid-2024. Atlas and Michael explain why that number matters more than the Fed's, why an investor earning 5% risk-free changes the math on every unprofitable company in the market, and why the terms on the next small-cap financing just got worse regardless of what those businesses did. Plus the split underneath a calm-looking week: the Dow had its worst week since March while technology shrugged off higher rates entirely, which is either conviction or a position waiting to be tested. Commentary and education only, never advice.