by ZeroHedge Staff at ZeroHedge
Tl;dr: For the 3rd meeting in a row, The Fed hiked 75bps as expected but signaled a much more hawkish than expected future trajectory of rates (higher for longer).
The Fed also slashed its economic growth expectations and increased its unemployment rate expectations.
As Bloomberg noted, “The higher median dot is a signal to us that the Fed is committed to its inflation-fighting mandate.”
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A lot has happened since the last FOMC meeting on July 27th. Fed Pivot narratives have imploded along with risk-asset prices as ‘peak inflation’ guesses failed to appear and at the same time growth fears were resurrected prompting growing fears of stagflation and a post-Jackson-Hole uber-hawkish Fed.
The dollar has been on a one-way trip higher since the last Fed meeting while pretty much everything else has tumbled – stocks and gold are almost exactly down the same while bonds have been a bloodbath… (red dashed line is Jackson Hole)…
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