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By Vincent JUVYNS, Global Market Strategist, J.P. Morgan Asset Management
As widely anticipated, the Federal Open Market Committee (FOMC) voted to raise the Federal funds target rate range by 0.50% to 0.75%-1.00% and signaled similar 50 basis point rate increases would be on the table for the next couple of meetings. Notably, Chairman Powell ruled out the possibility for a larger 75 basis point increase, which may have comforted investors fearful the committee would be overly aggressive in tightening policy. In addition, the committee also announced an end to quantitative easing, and will begin to reduce the size of its balance sheet beginning next month.
A few key takeaways from today's announcement:
1. Inflationary pressures have...
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