Fed signals a step-up in the pace of tightening

The Fed delivered another 25bp hike in its fed funds target range to between 1.75% and 2.00% today and the updated interest rate projections show that officials now anticipate an additional two 25bp hikes this year (up from one hike in the March projections) and a further three 25bp hikes in 2019. Overall, this was a modestly hawkish shift.

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