What the Fed said...

Everyone expected the Fed to skip a rate hike at the Sept 20 meeting, and that's exactly what happened. What caught the market by surprise was 'higher for longer' commentary from Chairman Powell, as well as Fed member forecasts for an additional rate hike this year and only 2 rate cuts by end-2024. The Fed wants 2% core inflation, and Powell definitely thinks they've stuck the 'soft landing'.