• The Fed raised interest rates 0.50%, as expected, to a range of 4.25-4.50%.
• Projections for the rate next year were revised upward by 0.50%, from 4.50-4.75% to 5.00-5.25%. This was a hawkish surprise and is impacting risk assets.
• The bond market is unconvinced, and continues to price in a high-point of a 4.75-5.00% rate and then cuts of 1.00% by early 2024.
• Chair Powell noted that the economy appears to be slowing, but continued to characterize the labor market as out-of-balance, and risks to inflation as skewed to the upside.
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