The Fed Fights the Fed

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The Federal Reserve signaled more interest-rate increases in the fight against inflation. As jdlahart explains, there seems to be a disconnect between what policy makers say they’ll do and what investors think they'll do. WSJWhatsNow

The Federal Reserve’s message to investors: Trust us, this time will be different.

, a step down from the half-point increase at their December meeting as well as the three-quarter point increases of their previous four meetings. This was hardly a surprise. Even before the Fed’s December decision, interest-rate futures had started implying that a quarter-point hike was the most likely outcome of Wednesday’s meeting.

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