ASI: Fed makes market nervous
ASI: Fed makes market nervous
Below is a commentary by James McCann, Chief Economist a.i. at Aberdeen Standard Investments, on the Fed meeting.
“This is not what the market expected. The Fed is now signaling that rates will need to rise sooner and faster, with their forecast suggesting two hikes in 2023. This change in stance jars a little with the Fed’s recent claims that the recent spike in inflation is temporary. If price volatility is temporary then there’s no obvious reason why they need to raise rates sooner than planned, especially with the labor market having disappointed of late. For some it is certainly going to signal deeper concerns about inflation on the committee.”