Tl;dr: Fed hiked 25bps and maintains QT (as expected), and left the terminal rate (via the DotPlot) unchanged. However, it shifted a slightly more dovish guidance on future policy hikes and an admission that the impact of its monetary policy could impact banks.
* * *
A lot has changed since The Fed last met on February 1st and decided to hike 25bps. Between Powell’s hawkish hearings with Congress and the dovish-inference of a global financial system crisis, the market’s expectations for The Fed’s actions today have swung wildly – but ironically, are basically unchanged since the Feb 1st meeting.
At its most hawkish the market priced in a 75% chance of a 50bps hike (after Powell’s hearings). That then collapsed to a 63% chance of a ‘pause’ by The Fed following the collapse of SVB and CS. The last week has seen expectations rise back to 80% or so of a 25bps hike…
To read more visit Zero Hedge.
- Mike Davis Speaks Out About Trump Indictment
- Former FBI Official Who Investigated Trump’s Alleged Ties With Russia Found To Be Working For Russian Oligarch
Original Article: https://creativedestructionmedia.com/news/markets/2023/03/22/fed-hikes-rates-25bps-maintains-qt-removes-hawkish-guidance/
