December 18-19Â FOMC meeting: Not as dovish as expected
Key points: In line with expectations, the Fed increased the target range of the fed funds rate by 25 bps to 2. 25 -2. 50 %. The median of the dots was lowered in 2019 and is now consistent with two hikes versus three in September. Yet, in the statement, the Fed maintained its “gradual†tightening mode one (against our expectations) only indicating that they will “monitor global economic and financial developmentsâ€. All in all, today’s information is not as dovish as it was expected by the market .