Here are five key takeaways from Wednesday's Fed rate hike
The Federal Reserve on Wednesday delivered a much-expected interest rate hike, and Chairman Kevin Warsh followed with a notably terse news conference at which he stressed policymakers' staunch commitment to tackling inflation.
"This is unlikely to be the end of Fed rate hikes β¦. It's hard to look at roughly 4% unemployment and a core PCE forecast of 3.5% and say the Fed shouldn't be focused on inflation. But monetary policy looks like a really costly way to solve this problem right now." β Mike Madowitz, principal economist at the Roosevelt Institute, a liberal think tank
"Risk assets were not enamored with the outcome of today's FOMC. Hopes of limited hikes ahead faded in the face of the Fed's resolve to address inflation. Still, after the initial reset, we believe Chair Warsh's clear messaging could actually help support Treasury prices further out the curve." β Andrzej Skiba, head of the BlueBay U.S. Fixed Income team at RBC Global Asset Management
"Warsh's press conference was coherent, confident and consistently hawkish without coming across as crazily so. He balanced a stern but disciplined message on inflation with an upbeat take on growth which he said has been strengthening since the start of the summer." β Krishna Guha, head of economics and central bank strategy at Evercore ISI
