The Fed stuck to the script and kept rates on hold in the 4.25%-4.50% target range. The median ‘dots’ still showed two rate cuts this year despite an uptick in inflation expectations, partly due to a transitory view of the tariff induced inflation rise and partly due to lower expected growth. A tapering of QT starting in April was announced, with the UST monthly redemption cap reduced to USD5bn from USD25bn.
For more, please see full note.