Market Wire: Federal Reserve Hikes 50 Basis Points, Remains Steadfastly Hawkish
The Federal Reserve’s rate-setting committee raised benchmark rates by 50 basis points and lifted rate forecasts by more than expected – suggesting that officials are waiting for sustained and conclusive evidence of a downturn in inflation before executing the policy “pivot” markets have been hoping for. At the conclusion of its last two-day meeting in 2022, the Federal Open Market Committee unanimously voted to raise the target range for the federal funds rate to 4.25-to-4.50 percent, with no dissents in favour of a smaller or larger move. In the official statement setting out the decision, policymakers avoided telegraphing a slower...