Federal Reserve (Fed). Steep but Steady Rate Hikes to Slow Growth Sharply in 2023

Much like the well-telegraphed increase in the policy rate, the press release was little changed from the June announcement. And while the Bank of Canada opened the door to a 100bps rate hike, the Fed is instead taking a steep but steady approach hiking rates. Consequently, we view future rate hikes in excess of 75bps to be unlikely.