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Federal Reserve <br />Source: Federal Reserve Source: Bloomberg <br />As expected at the November 2n d meeting,the Federal Open Market Committee (FOMC)raised the fed funds target rate by 75 basis points for <br />the fourth consecutive time to a range of 3.75 –4.00%,the highest level since 2008.Federal Reserve Chairman Powell reiterated that the risks <br />of pausing too soon outweigh the risks of slowereconomic growth.He commented that rates would likely reach higher levels than projected <br />and that policy would need to remain restrictive for some time.The Fed acknowledged the cumulative tightening of monetary policy and the <br />lag in its effects on inflation and the economy.There was nochange to the pace of balance sheet reduction,which is expected to continue at a <br />pace of approximately $95 billion per month.We believe the FOMC will continue to implement restrictive monetary policy until inflationary <br />pressures subside but will look for an opportunity to slow the pace of rate hikes as economic growth moderates. <br />0.00% <br />0.50% <br />1.00% <br />1.50% <br />2.00% <br />2.50% <br />3.00% <br />3.50% <br />4.00% <br />Effective Federal Funds Rate <br />Yield (%)2,000,000 <br />3,000,000 <br />4,000,000 <br />5,000,000 <br />6,000,000 <br />7,000,000 <br />8,000,000 <br />9,000,000 <br />10,000,000 <br />Federal Reserve Balance Sheet Assets <br />In$ millions11