The FOMC raised the Fed funds rate to 4.5%, and their forecast is that they will raise rates 75bps in 2023, likely 50bps at their next meeting in February and then 25bps in March and then keep the policy rate flat for the rest of the year, see the first chart. The bottom line for markets is that we are getting closer to the peak in the Fed funds rate, which historically has been associated with a rally in equities and credit, see the second chart.
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