Fed Chair Powell yesterday said rates may need to rise higher and faster than anticipated. Powell was appearing in front of the Senate banking committee.

Being highly data driven might be a mistake for the Fed – resulting in them taking action when data appears – which is too late as the causes of that data occurred months earlier.

The Fed’s policy rate is currently 4.5% to 4.75%.

Issuers may be wise to take a defensive stance – in case the Fed is running late and ultimately needs to hike rates more aggressively than currently anticipated by the market to control inflation.