Market comment

Fed presses on with 75bps hike, but Powell indicates pace will slow

DAVY VIEW

The Fed’s move last night (July 27th) to raise rates by 75bps to a 2.25-2.5% range was no surprise. However, US equity markets rallied following comments from Fed Chair Jay Powell that the pace of rate hikes will likely slow. Hence, rate expectations were pared back slightly, with Fed fund futures now implying 3.33% by end-2022 – consistent with a 50bps rise in September and a 25bps rise at both the November and December meetings.

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Jul 28 2022, 08:00 IST/BST

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