Cookie Settings
Picture
Contact Us
Picture

The Fed remains hawkish despite slowing down tightening

In Short

The unsurprising shift to a slower pace of tightening was the only dovish piece of news coming from the last Fed meeting of the year. FOMC members show a strong agreement on the need to raise rates further; the increase in the projected peak rate with respect to September, already anticipated, was stronger than what many (including us) expected.

Highlights:

  • The telegraphed 50 bps rise was followed by a strong and almost unanimous commitment to keep tightening. The FOMC projects a further 75bps tightening in 2023, to 5% to 5.25% peak (a 50-bps increase from what signalled in September), and plans cuts only the following year.
  • Yet the FOMC thinks that a “softish” landing is still possible. Growth projections for 2023 were scaled down, but the increase in expected unemployment is marginal. Inflation should end next year at 3.1% and go back to target only after 2025.
  • The Fed once again disappointed market’s hopes of a softening of its stance and the S&P lost 
    nearly 1% on the announcement.
     

Download the full publication below

The Fed remains hawkish despite slowing down tightening
Expertise
Responsible Investing
Insights
About Us
Contact
Picture
Picture
Picture

© Generali Investments, all rights reserved. This website is provided by Generali Investments Holding S.p.A. as the holding company of the main asset management companies of the Generali Group having, directly or indirectly, the majority shareholding in the companies listed below (hereinafter jointly, “Generali Investments”). This website may contain information related to the activity of the following companies: Generali Asset Management S.p.A. Società di gestione del risparmio, Infranity, Sycomore Asset Management, Aperture Investors LLC (including Aperture Investors UK Ltd), Plenisfer Investments S.p.A. Società di gestione del risparmio, Lumyna Investments Limited, Sosteneo S.p.A. Società di gestione del risparmio, Generali Real Estate S.p.A. Società di gestione del risparmio, Conning* and among its subsidiaries Global Evolution Asset Management A/S - including Global Evolution USA, LLC and Global Evolution Fund Management Singapore Pte. Ltd - Octagon Credit Investors, LLC, Pearlmark Real Estate, LLC as well as Generali Investments CEE. *Includes Conning, Inc., Conning Asset Management Limited, Conning Asia Pacific Limited, Conning Investment Products, Inc., Goodwin Capital Advisers, Inc. (collectively, “Conning”).

Legal Information
Cookies Policy
Privacy Policy
Terms and Conditions
Copyright
Glossary