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Fed kicks off tightening cycle in hawkish mood

The Fed began its tightening cycle with a 25bp hike today and, despite the uncertainty caused by the war in Ukraine and China's efforts to contain the spread of the Omicron variant, officials look set to hike rates by an additional 25bp at each of the remaining six policy meetings this year, which would take the fed funds target range to between 1.75% and 2.00%.

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