PLW - Fed Hikes By 75bp With The Same Again For July
- The Fed has today followed up with the first 75bp increase since 1994 as it tries to dampen inflation pressures with greater vigour.
- The Fed’s new forecasts sees them signal that the pace of policy tightening will remain intense over the next few months. This more aggressive stance comes at an economic cost, with the Fed revising down 4Q year-on-year 2022 GDP growth to 1.7% from 2.8% and 1.7% YoY from 2.2%YoY for 4Q 2023.
- We believe that the risks to the Fed’s rate hike projections are to the upside. Inflation is likely to be slow and sticky on its descent, thereby putting the onus on the Fed to weaken demand via higher interest rates.
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Fed Hikes By 75bp With The Same Again For July