Highlights:

• The Fed delivered another loud message to confirm that fighting inflation is an overarching priority, but eventually admitted that this will came at a cost, and that a soft landing will be hard to engineer. It hiked rates by the expected 75bps to 3.25% and plans to reach 4.5% in December, with a further 25bps increase in 2023. 
• Growth was significantly scaled down and projected to remain below trend until at least 2023 with the unemployment rate seen to increase, but inflation is now forecast to remain much stickier than what stated in the past meeting. 
• The slow growth and higher unemployment brought about by a long period of sizeable monetary restriction are considered the lesser evil compared with a protracted period of inflation that would require much more drastic action to eradicate.
   

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