Government Funding Deadline Approaches

The big market news this week was the Fed action increasing rates by 75 bps. The Fed chair, as has been his policy, well telegraphed the move and most market participants had expected the action.

At the post-meeting press conference the Chair reiterated his basic stance that the Fed will keep up the pace of increases, but will be data driven on future actions. He said that the Fed will not give up the fight prematurely and that the goal is an inflation rate of 2%. But he had a bone for doves with the statement “at some point, as the stance on policy tightens further, it will become appropriate to slow the pace of rate hikes while we assess how our cumulative policy decisions are affecting the economy and inflation.”

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