In the wake of Wednesday's Federal Open Market Committee (FOMC) +25bp rate hike and Powell's press conference.
BoA:
- We take on board a greater tightening in lending standards, which could substitute for policy rate tightening
- We now project one more 25bp rate hike for a terminal range of 5.0-5.25%, down 25bp from our prior target terminal range
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These guys musta been reading ForexLive, we've been conveying the tightening lending standards -> substitute for rate hikes meme for the past week:
If you need a catch-up on Wednesday's FOMC-bonanza:
- Federal Reserve hikes rates by 25 bps, as expected.
- The full FOMC statement for March 2023. Hikes by 25 bps
- FOMC dot plot and central tendencies from March 2023 meeting. EOY 2023 5.1%
- A comparison of the changes from February to March statements
- Powell opening statement: Inflation remains too high
- Powell Q&A: Before the banking issues, it looked like we would have to raise rates higher
- Before the Fed hike, before the press conference and at the end of the press conference
Inflation fighter