Daily Brief: When The Fed Says “Hike”, We Say “How High?”

9 days ago3:20 mins

Daily Brief: When The Fed Says “Hike”, We Say “How High?”

The Federal Reserve (the Fed) delivered its expected 0.75 percentage point hike and warned there’d be more big increases to come.

What does this mean?

After August’s dismal inflation report, there was never any doubt that the Fed would jack up rates – but the announcement itself was just a warm-up for the main event: the Fed’s long-term rate projections. A lot has changed since the last update in June, and the Fed’s “dot plot” (forecast of future rates) now points to peak rates of 4.6% in 2023 and no falls till 2024 – sparking an initial selloff by investors who hoped for a lower peak and earlier cuts.

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