U.S. Interest Rates
Pump It Up
On Wednesday, in a widely anticipated, but also highly expected move, the U.S. Federal Reserve raised the Federal Funds rate by 0.75%, up to 3.00%. However, what was not expected was the Federal Reserve’s hawkish signal on the future trajectory of rates. Per the Federal Reserve’s dot plot, which is their estimations of where rates will be on a going-forward basis, the median terminal rate anticipated came in well above expectations at 4.60% sometime between March-May 2023.