As everyone expected following the recent blitz by officials to prepare the markets, the Fed raised the fed funds target by another 25bp today, to between 0.75% and 1.00%, but officials left their interest rate projections largely unchanged. As a result, this hike won't prompt markets to revise up expectations of how fast monetary policy will be tightened over the next few years. Minneapolis Fed President Neel Kashkari's decision to vote for no change today could even be interpreted as a dovish sign.
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