Federal Reserve FOMC Statement and Key Takeaways from the Powell Press Conference:
• Raised rates by 25bp to 3.75%-4%, the first hike since July 2023
• Healthy economic expansion with full employment; raised growth expectations for this year and next
• Inflation remains high; raised this year’s inflation forecast and expects inflation to return to 2% in 2029
• Dot plot: 16 officials expect at least one more rate hike in 2026, with a median of 4.1%
Powell: Financial conditions are not restrictive; some easing has been removed; no forward guidance is provided; the top priority is inflation that is too high; the economy has resilience.
Market: Gold fell by about $100, the U.S. dollar index broke above 100, Treasury yields rose, and U.S. stocks turned lower; interest rate futures pricing implies about another 33bp of hikes this year and a cumulative 75bp of additional hikes by next June.
#美联储 #加息 #FOMC #USD
• Raised rates by 25bp to 3.75%-4%, the first hike since July 2023
• Healthy economic expansion with full employment; raised growth expectations for this year and next
• Inflation remains high; raised this year’s inflation forecast and expects inflation to return to 2% in 2029
• Dot plot: 16 officials expect at least one more rate hike in 2026, with a median of 4.1%
Powell: Financial conditions are not restrictive; some easing has been removed; no forward guidance is provided; the top priority is inflation that is too high; the economy has resilience.
Market: Gold fell by about $100, the U.S. dollar index broke above 100, Treasury yields rose, and U.S. stocks turned lower; interest rate futures pricing implies about another 33bp of hikes this year and a cumulative 75bp of additional hikes by next June.
#美联储 #加息 #FOMC #USD