US Fed's pyrrhic victory over inflation after policy rate hiked by 75 bps

Powell cannot afford to take his eyes off the prize - to get inflation down

The US Federal Reserve (Fed) lifted the policy rates by 75 basis points and strongly committed to bring down inflation to its 2 per cent target. Equity markets globally rallied on optimism that the Fed will slow its pace of monetary tightening. Experts believe as the US central bank is not yet done with its war against inflation, stocks are still not completely out of the woods and volatility will soon rear its ugly head.
 
A divided house on market optimism:
 
“While another unusually large increase could be appropriate at our next meeting, that is a decision that