Fed Hikes Rates Half Point, Will Shrink Assets to Curb Inflation

What Bloomberg Economics Says

“Bloomberg Economics expects the Fed to hike by 50 bps at its next two meetings as well, with the fed funds rate exceeding FOMC members’ neutral-rate estimate of about 2.5% in the last quarter of this year. At the announced pace, the balance-sheet runoff will see the Fed’s portfolio approach its pre-pandemic size by 2024.”

— Anna Wong, Yelena Shulyatyeva, Andrew Husby and Eliza Winger (economists)

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