Fed’s 25bp Rate Hike Marks Beginning of ‘Disinflationary Process’
In his announcement of a 25bp rate increase, Fed Chair Jerome Powell acknowledged the slowing of inflation and referred to the relatively modest increase as the beginning of a ‘disinflationary process’. The Fed has projected a peak rate between 5.0% and 5.25% this year, up from the current range of 4.5%-4.75%. This smaller rate increase had stocks on the rise, though the yield on 2-yr Treasuries fell by 10bp and the dollar traded lower against other major currencies. Read more.