The US Fed has brought forward the likely timing of interest rate increases. At the end of the two-day meeting the central bank left policy unchanged but signalled two rate hikes as early as 2023 and raised inflation expectations. In a press conference after the meeting, Chairman Jerome Powell tried to play the announcement down by saying the projections should be taken with a “big grain of salt”. However, stocks fell after the announcement, the dollar and US Treasury yields spiked and gold fell. UK and European markets are only slightly lower this morning and appear to be taking the announcement in their stride.

No indication was given on when the Fed’s bond-buying program might be cut back but Powell said “advanced notice” would be given before that happened.

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