The Federal Reserve's latest quarter-point rate increase signals that its monetary tightening phase is officially underway, according to leading economists at two major financial institutions.

Matthew Luzzetti, Chief US Economist at Deutsche Bank, characterized the move as the beginning of a moderate tightening cycle, noting that the central bank's patience with inflation has reached its limit. Meanwhile, Diane Swonk, Chief Economist at KPMG, echoed this view, suggesting the Fed is now committed to a path of higher borrowing costs.

The updated "dot plot" projections proved more hawkish than many had anticipated, Luzzetti added, with market consensus strongly pointing toward the possibility of at least two additional rate hikes in the near term.

Richard Clarida, Global Economic Advisor at PIMCO, highlighted the importance of the decision being unanimous among all committee members. He also observed that the core PCE price index, currently running at a 3.4% annual increase, appears "somewhat elevated," underscoring the Fed's concern over persistently high inflation pressures.