Federal Reserve moved up it's rate hike calendar as surging inflation concerns pushed Jerome Powell & FOMC into raising it's inflation outlook as well.
Federal Reserve officials indicated that rate hikes could come as soon as 2023, after saying in March that it saw no increases until at least 2024. The new 'dot-plot' marking Fed member expectations pointed to two hikes in 2023. This comes at the back of a higher than expected surge in inflation. The fed also raised their inflation targets to 3.4%, a full percentage point higher than the March projection.
The more aggressive signal from the Fed’s forecasts saw the dollar rise, stocks decline and yields on 10-year Treasuries jump. The market was not anticipating such move up in rate hike calendar which translates to earlier than anticipated wrap-up of the easy money policy by the world's most powerful central bank.