Fed makes 'hawkish skip' in first rate pause of cycle

After over a year of ten consecutive rate increases, the Federal Open Market Committee voted unanimously to keep rates in place yesterday (14 June) at 5-5.25%.  However, forward guidance was clear that contrary to some market views, this would likely be temporary, and further rate hikes were expected later in the year, according to the committee. "Looking ahead, nearly all committee participants view it as likely that some further rate increases will be appropriate this year to bring inflation down to 2% over time," said Fed chair Jerome Powell. In the minutes of the FOMC meeting, ...