3.23.23 Three Takeaways from the Fed Decision
Overview
- As we expected, the Federal Reserve (Fed) raised the fed funds rate by 0.25%, pushing the upper bound to 5.00%.
- Financial conditions were stable enough for the Federal Open Market Committee (FOMC) to release updated projections, unlike the Fed’s decision back in March 2020 to delay updated projections due to financial instability.
- Yesterday, the Committee was unanimous in their decision, creating an aura of calm for markets.
- Financial stability is clearly a vital factor in future decisions, but as of now, the Fed will likely hike at least one more time at the May meeting.
- Tighter credit conditions translate int...
Read more