Fed hikes by 75bps to 3.75-4.00% as widely expected. Tightening bias is maintained as “the Committee anticipates that ongoing increases in the target range will be appropriate”.
However, in the statement, Fed added, “in determining the pace of future increases in the target range, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.”
The additional language suggests that Fed might be ready to slow down the pace of tightening ahead.
