News & Events

The Weekly Wrap - March 18, 2022

The Federal Reserve shared headlines with the war in Ukraine this week and, like the uncertain outcome of the Russian invasion, the endgame of the Fed’s strategy is anything but settled. As it telegraphed weeks in advance, the Fed took the first step in its planned rate-hiking cycle at its policy-setting meeting this week, increasing the short-term rate target for the first time since December 2018. The cautious quarter-point increase came as no surprise in the financial markets, but Fed officials laid out a more hawkish strategy than had been expected, signaling six more rate increases this year for a total of 1 ¾ percentage points. If things go according to plan, the cycle would continue next year as well, leaving the fed funds rate at around 2.75 percent at the end of 2023.