by ZeroHedge News Staff at ZeroHedge
Fed raises rates by 25 bps as expected.
Policy statement softens the rate guidance in a way consistent with past pauses and The Fed deletes reference to “some additional policy firming may be appropriate.”
A clear hat-tip to the banking crisis:
“Recent development are likely to result in tighter credit conditions” removed and replaced with “Tighter credit conditions”
The decision was unanimous.
As WSJ Fed Whisperer Nick Timiraos notes: “The FOMC statement used language broadly similar to how officials concluded their interest-rate increases in 2006, with no explicit promise of a pause by retaining a bias to tighten.”
This is clearly more of a hawkish pause since it doesn’t suggest whether ‘policy easing’ may be appropriate…
…but then again, if Powell had gone that far, markets would have panicked over “what does he know”?
What happens next?…