As universally expected, the FOMC kept the fed funds target range unchanged at between 0.25% and 0.50% today, but left the door open to a second 25 basis point rate hike in June. With core inflation picking up and global risks diminishing, we still anticipate a total of three 25bp rate hikes this year, taking the target range to between 1.00% and 1.25% by year-end.
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