The Federal Reserve has decided against raising interest rates again breaking a 15-month run in rate hikes.
However, the trajectory of future interest rate changes indicated by individual members’ predictions suggests the Federal Reserve will hike rates twice again this year.
The median forecast of US rates is a rise to 5.6% before the end of 2023, up from 5.1% the last time the Fed met.
The hawkish shift in the rates forecast saw US stocks dump with the S&P 500 trading down 0.59% to 4,343 at the time of writing.
“Investors had expected policymakers to keep rates on hold, but the more hawkish tone came as some surprise, with two extra hikes pencilled in by half of the officials sitting on the committee,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown
“There are three outlier views suggesting an even tougher stance might be needed to take down inflation closer to target.”
