Market Wire: Dollar Soars as Fed Raises Terminal Rate Expectations
The Federal Reserve’s rate-setting committee raised its benchmark interest rate by 75 basis points and drastically raised its terminal rate estimates, triggering a spike in yields and the dollar. At the conclusion of its two-day meeting, the Federal Open Market Committee unanimously voted to raise the target range for the federal funds rate to 3-to-3.25 percent, with no dissents in favour of a 50 basis point move. In the official statement laying out the decision, policymakers removed language that previously highlighted a softening in spending and production, instead noting that “modest growth” should be expected. According to the accompanying Statement...