Fed Rate Hikes & Refined Reserves The Fed hiked rates for the first time in 3 years. To fight inflation... Hikes generally have negative short-term implications for both equities and bonds: Equities: Higher discount rates lower the current value of future earnings. Bonds: Values drop, because current (older) bonds are now less valuable than newly issued bonds, which pay higher interest rates. And cash? Still trash. My view hasn't changed, and the core ideas from this video still hold: Cash is...