The Federal Reserve raised rates by triple-sized 75 bps as expected. There are further rate increases to come, economists at Commerzbank report.
Inflation is a priority
“The Fed took its third big rate step in a row, raising rates by 75 bp to 3.00%-3.25%.”
“The central bank held out the prospect of further significant rate hikes and is apparently prepared to accept a recession if this is necessary to combat the high inflation.”
“Powell made it very clear again that the Fed is giving priority to fighting inflation. As a result, key rates are likely to rise much higher than most observers and the Fed itself had originally expected. These steps will probably take place quite quickly.”
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