Hawkish Fed Plans To Pare (Investing.com)

Marc Chandler | Investing.com

The Federal Reserve did not surprise. 

It did not change interest rates while announcing that its plan to begin reducing its balance sheet will begin next month. Through the economic projections, the FOMC continued to signal that a hike in December is still appropriate. In fact, the dot plots show that 11 of 16 Fed members think one more hike this year will be appropriate. Four say steady and one says that two hikes this year are appropriate. Just remember, these are not forecasts. One Fed official did not forecast a 50-bp rate hike in December. It is an expression of the belief that the Fed is behind the curve, which is exactly what the easy financial conditions show.