Fed funds target rate
  • Rates were cut to a range of 0.00-0.25% at the onset of the pandemic
  • Regarding the war in Ukraine, said 'The implications for the U.S. economy are highly uncertain, but in the near term the invasion and related events are likely to create additional upward pressure on inflation and weigh on economic activity.'
  • Indicators of economic activity and employment have continued to strengthen
  • The Committee expects to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities at a coming meeting
  • The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals

The rate hike was priced in but the surprise is 7 hikes in the dot plot. The market is priced for that but the market usually runs ahead of the Fed and the talk ahead of time was 5 hikes.