The interest rate announcement from the Fed was not an early Christmas present, quite the opposite. Federal Reserve downshifts to a 50 basis point hike while seeing more increased rate ahead. The central bank's policymaking committee still sees more rate increases ahead "in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time" it said in a statement.
It was pointed out that inflation remains high and that job gains have been robust over the past month. It reiterated that they are "highly attentive to inflation risks" and "strongly committed to returning inflation to is 2% objective". In the minutes after the announcement, all three major U.S. stock indices sunk into red, erasing gains from the earlier in the session. Our portfolio value fell by just under 5%.
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