How did the Fed meeting end?

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Our prediction turned out to be correct. Well, good.

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In 2022, the rate is expected to be in the range of 0.6%-0.9% (previously it was: 0.1%-0.4%).

In 2023, the rate is expected to be in the range of 1.4%-1.9% (previously it was: 0.4%-1.1%).

The market included three Fed rate hikes in rates. But the fact that the members of the committee put them into expectations turned out to be a little sudden … Everything changes too much in this life. And another six months or a year, and we will learn something new.

3️⃣

What does this mean for us mere mortals?

Yes, only one. «Drying» liquidity. If the Fed sells something from its balance sheet, then someone will buy it in the end.

Who? The market, of course. This means that there will be less money in the market.

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That is, the Fed admits that they are now working in different conditions, the risks of prolonged high inflation have increased. The Fed’s inflation forecast for 2021 was raised to 5.3% from 4.2%, and for 2022 to 2.6% from 2.2%.

Yes, blessed are those who believe.


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