The Fed has re-evaluated its inflation expectation and moved its next interest rate increase date forward.
- Fed Chairman Jerome Powell said discussions have been held on reduction of bond-buying by the central bank, though a date as to when the exercise would begin was not given.
- Policymaking Fed Open Market Committee in unison omitted its baseline short-term borrowing rate fixed at almost zero, officials however said the increase in rates could be as early as 2023.
- In March, Fed had suggested 2024 as the earliest the rate increases could be implemented.
Fed has increased its total inflation expectations to 3.4%, a whole percentage more than projected in March, though still maintained its stance that price increments are only temporary.
SPY is down 0.56%, EURUSD is down 0.45%
Source: Federal Reserve
