Janet Yellen and the FOMC met market expectations and increased the Fed Funds target range by 25 basis points to 0.75%/1.00%. There was no surprise in this move by the FOMC, but despite this, the market reaction was a sharp fall on Treasury yields and the dollar. This came with a mildly less hawkish tone than anticipated in the statement and the economic projections. There were only the most marginal of tweaks to growth and inflation projections by just 0.1% across the three year horizon, whilst keeping the longer run growth at +1.8% which is below trend growth has prompted the luke-warm response in the market. This ... (full story)