Going into this week’s meeting, markets were hoping for a sign that the Fed, after a fourth straight 0.75-percentage-point rate increase, might soon pivot to a slower tightening pace, and perhaps an outright pause. The Fed statement released at 2 p.m. Wednesday suggested it would: “In determining the pace of future increases…the [Fed] will take into account the cumulative tightening of monetary policy [and] the lags with which monetary policy affects economic activity and inflation.” The resulting jump in stock prices and the fall in bond yields was short lived. Soon after Mr. Powell started his press conference at 2:30 p.m., he explained that even if rate increases slow, “we may ultimately move to higher levels than we thought at the September meeting.”
Source: WSJ
