Federal Reserve hikes rates by 75 bps versus 75 bps expected

• New range of Fed funds is 3.75-4.00% vs prior range of 3.00%-3.25%
• Recent indicators point to modest growth in spending and production
• Repeats that the Committee is highly attentive to inflation risks
• Repeats that " The Committee anticipates that ongoing increases in the target range will be appropriate"
• Highlights comulative tightening and lags in policy
• Prior statement

The statement includes this dovish bit and it's weighing on the dollar across the board. EUR/USD is up 70 pips since the release to 0.9940 and it's similar across the board for USD.

"In determining the pace of future increases in the target range, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments."

That's a reference to slowing down the pace of hikes, though it's deliberately vague on the timeline for doing that.

The market was 98% priced in for a 75 basis point hike at the end of this two-day Federal Reserve Federal Reserve The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the Read this Term meeting. Looking ahead, the terminal top was priced at 5.03% in May, which is higher than the 4.6% implied in the Fed's dot plot. Since the statement was released, that's down to 4.96%. Market participants will look for clues from Fed Chairman Jerome Powell on the path of rate hikes going forward and how he sees progress towards bringing inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term under control. His press conference will begin at 3:30 pm ET.