Eight days that shook the markets

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.Mr Powell’s comment about uncommonly large increases was enough to spark a partial reversal of the sharp rise in bond yields over the preceding days and a relief rally in share prices. But however much he tried to sugar-coat the message, rates are going up by a lot more and the chances of a hard landing for the economy have surely increased as a consequence. , if not (yet) by the Fed. And the rapid changes in the market mood show just how much the Fed and other rich-world central banks have lost control of events.