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Dot-plot Blindness has Dollar Bears Bailing
The Fed did not surprise, they did what was expected of them on the headline, but it’s their foresight that has capital markets wildly gyrating. The big takeaway from yesterday’s FOMC meeting is the increase in the pace of tightening that’s been signalled for next year. Policy members voted unanimously to raise its target for the fed funds rate up +0.25% to +0.5%- 0.75%. In their communique, the Fed described an improving labor market, growth in household spending, but soft business investment. Inflation, although picking up, is still below their desired +2% goal. The net result, the rate increase along with ... (full story)
