FOMC raised interest rate by 0.50% as expected. The commentary from the Feds was insightful and data-driven. They've clearly stated that they plan to continue raising interest rates next year with current expectation of terminal rate > 5% and that they don't see reducing interest rates until 2024. They would obviously make future decisions based on the contemporary economic data. All this sounds pragmatic as the general expectation of core CPI (excludes food and energy prices) by the end of next year is >=3.5%. This was obviously not what some investors were "hoping" as all three major US indices dipped from green after the decision and finished the day in red.
top of page
bottom of page
Comments