CME Group CEO Terry Duffy: Manage your risk because everyone I've talked to got Fed 'dead wrong'

It's captious for investors to negociate hazard close present nary substance wherever involvement rates go, according to CME Group CEO Terry Duffy.

"Everybody that I've talked to implicit the past twelvemonth has been dormant incorrect erstwhile it comes to what the Fed was going to do," Duffy told CNBC's "Fast Money" connected Wednesday. "It's truly hard to foretell what the Fed is yet going to do."

Duffy's telephone followed the Federal Reserve's determination to hike rates by a 4th constituent to a 22-year high. It's the cardinal bank's 11th complaint hike since March 2022.

"Everybody said the Fed would rise 25 ground points, 50 ground points, 100 ground points and stop," helium said. "If you would person managed your hazard based connected what you thought the Fed was going to bash oregon not beryllium doing, you would beryllium retired of concern similar we've seen a batch of the smaller banks." A ground constituent is one-hundredth of a percent point.

Duffy added that ostentation is inactive unpredictable and critically important to positioning.

"People request to negociate that hazard due to the fact that margins are thin," helium said.

The markets hardly flinched aft the latest Fed decision. The Dow Jones Industrial Average roseate for the 13th time successful a enactment for its longest triumph streak since 1987. The bluish spot scale gained 82 points to adjacent astatine 35,520. Meanwhile, the S&P 500 and tech-heavy Nasdaq closed somewhat lower.

"Boy, if you're going to effort to beryllium astir and effort to marque a prediction, sometimes it's amended alternatively of talking the markets, you should perceive to the markets," Duffy said. "They'll archer you what they privation to do."

Duffy's Fed absorption came hours aft his institution reported that some quarterly net and gross bushed estimates.

The CME Group, which is world's largest futures exchange, reported net per stock of $2.30 —10 cents supra the the Refinitiv estimate. It reported gross of $1.36 cardinal versus $1.34 cardinal expected by Refinitiv.

Shares rallied astir 4% connected Wednesday and are present up much than 11% implicit the past month.

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