CBSE - Fed Focused On Getting Back Toward Neutral
- As many observers anticipated, and as the central bank itself telegraphed, the U.S. Federal Reserve signaled at its December 2021 meeting that a sooner start and faster pace of rate hikes is likely warranted over the coming quarters and years.
- Since the previous FOMC meeting in early November, several important macro developments likely prompted Fed officials to shift their outlooks.
- In our view, the Fed so far has masterfully navigated the adjustment in market expectations for the path of policy without materially tightening financial conditions.
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Fed Focused On Getting Back Toward Neutral