December S&P 500 futures (ESZ23) are down -0.42%, and December Nasdaq 100 E-Mini futures (NQZ23) are down -0.65% this morning as Treasury yields jumped after the Federal Reserve signaled interest rates would be higher for longer.
As widely expected, the Federal Reserve held its target range for the federal funds rate at 5.25% to 5.50% on Wednesday. At the same time, the Fed’s updated Summary of Economic Projections revealed that most officials favored another rate hike in 2023. Also, policymakers raised their projections for the federal funds rate at the end of 2024 to 5.1% compared with their previous forecast of 4.6%. Federal Reserve Chair Jerome Powell said officials are “prepared to raise rates further if appropriate, and we intend to hold policy at a restrictive level until we’re confident that inflation is moving down sustainably toward our objective.”
