Federal Reserve Hints at Further Policy Tightening After 75-Basis Point Hike

Source: Federal Reserve

The United States is set to tighten monetary policy further after the 75 basis points hike this week, citing inflationary risks and pressures on global economic activity. QQQ is down 2.22%, and SPY is down 1.98% premarket.

• The Federal Open Market Committee has hiked its federal funds target range to 1.5% to 1.75% and sees that ongoing increases will be appropriate.
• The FOMC will also scale down its Treasury securities and agency debt holdings, along with agency mortgage-backed securities.
• The committee said it is prepared to adjust monetary policy should the conditions be appropriate.
• It cited Russia’s invasion of Ukraine, causing upward pressure on inflation and hitting global economic activity.
• COVID-related lockdowns in China will also likely impact supply chain disruptions.
• The FOMC said it continues to target maximum employment and inflation hovering at 2% in the long run.