FOMC REVIEW

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The Bank raised interest rates by a quarter percentage point (first since 2018) and signalled hikes at all six remaining meetings this year .

Policy makers led by Chair Jerome Powell voted 8-1 to lift their key, hawkish member

Bullard dissented in favour of a half-point hike.


"INFLATION": We are attentive to the risks of further upward pressure on inflation and inflation expectations. Inflation forecast was significantly higher than previously anticipated, at 4.3% this year, but still coming down to 2.3% in 2024.

"GROWTH/UNEMPLOYMENT": The forecast for economic growth in 2022 was lowered to 2.8%

"from 4%, while unemployment projections were little changed.

"FLEXBILITY": anticipates that ongoing increases in the target range will be appropriate, and repeated his pledge to be nimble

"BALANCE SHEET": The Fed said it would begin allowing its $8.9 trillion balance sheet to shrink at a coming meeting without elaborating.

"UKRAINE-RUSSIA": Powell acknowledged the geopolitical uncertainty clouding the outlook, and emphasised that the conflict is likely to put additional upward pressure on near­ term inflation here at home and also weigh on economic activity


Source : BBG & FT


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تم التحرير 18 Mar 2022, 16:08

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