At the September meeting, Fed officials hiked the fed funds rate by 75 basis points (bps) and provided their most resolute messaging to date on their willingness to do whatever it takes to battle inflation. Stronger, stickier, and broader-based U.S. inflation since the Fed last shared forecasts in June argued for a much steeper rate-hiking path, and the Fed delivered by upgrading the rate trajectory for 2022 and 2023 by 75 to 100 bps. Given tighter financial conditions and a higher fed funds rate, we believe the path to a soft landing continues to narrow. Chair Jerome Powell acknowledged this by admitting some ... (full story)