Mid-week market update: It's not easy to make a market comment on an FOMC day. Let's start by analyzing the Fed's projections. The latest Summary of Economic Projections (SEP) shows a stronger economy and tigher monetary policy in response to the revised projections.
The Fed revised up its GDP projections for this year by 0.6% and revised down the unemployment rate by 0.4%. While headline PCE inflation is expected to fade by -0.1%, the more important core PCE was revised up by 0.3%. As a consequence, the target Fed Funds rate projection rose by 0.5% for 2023, with further upside revisions for 2024 and 2025.
The full post can be found here.
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