Three key points about the Fed’s decision

Frankfurt On the day after what is probably the most important meeting of the US Federal Reserve (Fed) in years, markets and experts are still trying to find their way around. On Wednesday, the head of the central bank, Jerome Powell, announced a concrete interest rate hike for March and created further scope for a tighter monetary policy.

The markets initially reacted negatively, but then calmed down again. Three conclusions can be drawn from the reactions:

1. The Fed chair delivered roughly what was expected.
2. Powell’s attempt to be as transparent as possible and at the same time flexible leaves some uncertainty behind.
3. The trend towards a tougher monetary policy, which investors feared even before the meeting, has been confirmed.