While June monetary policy was unchanged the Federal Reserve signalled that the members are not very confident in their transitory inflation narrative.
With growth also revised up the Fed is now indicating that market should be braced for two rate hikes, that is 50bp of rate increase in 2023 with the prospect of an earlier QE taper.
Overall, the FX and commodity market is volatile and will continue to focus on the US economic data. The upcoming inflation and labour market data will be the key on how Fed policy evolves later this year.
FOMC Triggers Off Rate Hike Cycle
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