Daily Alert: Fed kicks off Super Thursday by signalling 50bps of hikes by 2023

  • The US Federal Open Market Committee kept its key policy settings broadly unchanged, holding its policy interest rates in a 0.0% to 0.25% range and maintaining QE at a USD120bn monthly pace.
  • However, what caused a stir in markets was the admission by the Fed that the period of ultra-low interest rates was unlikely to continue forever, considering the brighter signs in the US economy.
  • Market reaction to the Fed was swift, particularly in the Treasury market; the USD index jumped after the Fed announcement pushing the NZD down by close to 1 US cent.

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