The Federal Reserve hiked its benchmark rate by 25 basis points (bps) in a unanimous decision but softened its tone on further increases. We are getting very close to terminal, in the opinion of economists at RBC Economics.

Dovish 25 bps hike

“25 bps hike was largely anticipated, but only after market expectations whipsawed in recent weeks.”

“Fed says recent developments will tighten credit conditions and weigh on the economy.”

“Statement flags ‘some additional policy firming’; dot plot median points to one more hike.”