Slowing Down and Going Higher? Feed Meeting Recap
Description
This week Brian discusses how the Federal Reserve (Fed) ended its two-day Federal Open Market Committee (FOMC) meeting this week and the outcome was broadly in line with market expectations. As expected, the Committee raised short-term interest rates by 0.75% to take the fed funds rate to 4.0% (upper bound).
However, during the press conference, Powell suggested he sees rates higher than expected at the last forecast round in September, indicating a terminal rate above 5%. Bond markets have priced in a terminal rate slightly above 5% by the May 2023 meeting and then marginal cuts throughout the year.
LPL Chart of the Day
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Music:
Cold Funk - Funkorama by Kevin MacLeod is licensed under a Creative Commons Attribution license. Source.
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