Eight days that shook the markets

“I do not expect moves of this size to be common,” said Jerome Powell, chairman of the Federal Reserve, on June 15th. The central bank had just raised its benchmark interest rate by 75 basis points (0.75 percentage points) to 1.5%-1.75%. It was the third increase in as many meetings and the biggest jump in short-term rates since 1994. The move was both expected and surprising. Mr Powell had warmed up markets weeks ago to the prospect of a 50-basis-point increase at this monetary-policy meeting. But in the days leading up to it, investors had quickly and fully priced in a larger rise—with more to come.