Fed Review: Front-loading to continue despite growth risks
|As expected by both the analyst consensus and the markets, the Fed hiked the target range by 75bp to 2.25-2.50%.
With inflation pressures still strong and broad-based, we continue to see risks tilted towards more front-loading, and adjust our Fed call to expect a 75bp hike in the September meeting, followed by 25bp in November and December.
With both Fed Funds rate and real yields now around neutral, Fed will take more meeting-by-meeting with regard to the future rate hikes, which leaves the outlook for hikes later in the year very uncertain.
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