Fed hikes rates by 25BPS, Powell says disinflationary process started

Today, the Federal Reserve increased rate by 25BPS.

For many, this suggested a turning the corner of inflation.

Notably, the Fed vote was unaminous. It stated that inflation was still high, with the war in Ukraine contributing.

Policymakers also projected "ongoing increases" in borrowing costs would be needed, a still open-ended commitment that did not yet pinpoint when the rate hikes might stop, and pushed back against an expectation in financial markets that the Fed would pause soon and, indeed, cut rates later this year.

Powell said we can now say, for the first time, the disinflationary process has started.

He added this was a good thing.