Fed has hiked rates for the first time in nearly four years and has promised six more, making it the fastest rate hiking cycle in decades. But markets have risen nevertheless.
Also Read: US Fed rate hike: Market watchers say hawkish stance may see flows move out to other markets
The Fed was undoubtedly hawkish. The December dot chart had guided for 3 rate hikes in 2022, now that has become seven. For 2023, the December forecast was for 4 more hikes; now it is 3 more. But now the total hikes is ten hikes versus 7 earlier. US gross domestic product (GDP) has been drastically cut to 2.8 percent from 4 percent earlier and more important inflation forecast is sharply up to 4.1 percent by end 2022 from the earlier forecast of 2.8 percent.
Watch the accompanying video of CNBC-TV18’s Latha Venkatesh explaining the key takeaways from the Fed and what one needs to look forward to.Catch all stock market updates here