Scotia summarise the Federal Open Market Committee (FOMC) outcome:

The FOMC hiked by 25bps and guided one more possible hike to come.

• They left the terminal rate unchanged, but reduced next year’s projected cuts.

• QT plans were left unchanged

• Tightened conditions equate to roughly a 25bps hike...

• ...but Powell emphasized high bidirectional uncertainty toward this estimate

And add:

  • My overall impression is that what the FOMC did as described below is defensible. Too abruptly swinging in either direction could have rocked fragile confidence. That said, it's all just a bunch of placeholders for now and perhaps there will be greater clarity into the next 1–2 meetings that will inform their stance and future forecasts at the June meeting.
dot Federal Open Market Committee (FOMC) 23 March 2023

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If you need a catch-up on Wednesday's FOMC-bonanza:

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inflation