Rate Reprieve

Unsurprisingly, the Fed left the Fed funds rate unchanged today but signaled a willingness to possibly raise it 25bps in the future, another mildly hawkish pause. However, by adding the word financial, the only meaningful change to the press release compared to the last meeting, to the sentence “Tighter financial and credit conditions for households are likely to weigh on economic activity…” I bet the Fed is done hiking.