The European Central Bank raised interest rates first, and now the Fed is following suit! If Japan also joins in with rate hikes, we can officially define this as the opening of a collective tightening window for developed economies. In his 30-minute speech, Waller was interpreted by the market as leaning hawkish, but despite the hawkish tone combined with rate hikes, it didn’t cause much of a shock to the market! This is why I’ve been saying that whether the Fed raises rates or not is no longer the focus. Personally, I think the key lies in tomorrow’s Japanese interest rate decision and policy statement—just a little excited for it. Developed economies tightening window.