A 50bp hike takes the policy rate to 4.25-4.5%. There is clearly some discomfort at the Federal Reserve that recent declines in Treasury yields and the dollar are undermining its efforts to bring inflation under control. Consequently, it will keep the hikes coming and acknowledge this will mean a 'sustained period' of below-trend growth and job losses. 50bp with a hawkish twist: The Federal Reserve voted unanimously to raise the Fed Funds target rate range by 50bp to 4.25-4.5%, in line with market expectations. The text repeats that officials anticipate that “ongoing increases” in the Fed Funds rate will be ... (full story)