The Federal Reserve raised rates by a triple 75 bps as expected. Another rate hike awaits us, economists from Commerzbank report.
Inflation is the priority
“The Fed made its third big rate move in a row, raising rates by 75bp to 3.00%-3.25%.”
“The central bank has held the prospect of another significant rate hike and is clearly prepared to accept a recession if necessary to combat high inflation.”
“Powell has made it very clear again that the Fed’s priority is to fight inflation. As a result, key rates are likely to rise much higher than most observers and the Fed itself had originally expected. These steps are likely to happen fairly quickly.”