The Fed was more hawkish than expected, but only by a touch. Bottom lines are
- double tapered speed - due to end in March
- 3 hikes in 2022 (up from 2)
- pause between taper and hikes possible
- terminal rate unchanged 2.5%
- inflation revised higher, but crucially still seen as transitory/temporary (pick your language)
So, equities not afraid and the US can always slow if Omicron dictates. No reason from the Fed for the Santa rally not to continue. Merry Christmas everyone.
