Fed Hikes Interest Rate 25bp

Date:

Share:

Fed Hikes Interest Rate 25bp
Jerome Powell, chairman of the U.S. Federal Reserve

Fed Hikes Interest Rate 25bp

The Federal Reserve raised the target range for its benchmark interest rate by 0.25% on Wednesday while leaving its options open on future rate hikes. The central bank’s move pushed its benchmark policy rate, the fed funds rate, to a new range of 5%-5.25%, the highest since September 2007.

The Fed said future rate hikes would be contingent on the impact of previous rate hikes on the economy and financial developments. Fed officials still view inflation as elevated, and note that they remain “highly attentive” to inflation risks.

As part of its most aggressive rate hiking campaign since the 1980s, the US central bank has increased the target range for its benchmark interest rate by 5 percentage points since March 2022. Wednesday’s decision was unanimous among voting members of the Federal Open Market Committee (FOMC), the Fed committee that decides on policy.

Fed Chair Jay Powell began his press conference on Wednesday with a discussion of the latest developments in the ongoing bank crisis, which last week saw the FDIC broker a sale of First Republic (FRC) to JPMorgan (JPM).

Powell said “Conditions in that sector have broadly improved since early March, and the US banking system is sound and resilient.”

At least twice during Wednesday’s press conference, Powell pointed to the “meaningful” change in the Fed’s statement that swapped in language about the Fed determining “the extent to which” it may need to raise rates; previously, the Fed said it had “anticipated” future rate hikes.

Still, Powell sought to maintain flexibility on future policy decisions, saying: “A decision on a pause was not made today.” Powell did say that among members of the FOMC “there’s a sense that we’re…much closer to the end of this than the beginning.” #Fed Hikes Interest Rate 25bp

Naira Steadies as Banks Issue Update on FX Purchase

Subscribe to our magazine

━ more like this

AFCON 2023 Countdown: Cote d’Ivoire may turn back some Nigerians over travel passports

BY KUNLE SOLAJA. Nigerians holding the ECOWAS Travel Certificates and going for the Africa Cup of Nations next month are certain...

Namibia trainer Benjamin names list of 28 players

Namibia will make its fourth African Cup of Nations appearance Coach Collin Benjamin has called up 28 players The Brave Warriors...

Guinea coach Diawara names 25-man squad for AFCON

Guinea will be making its 13th  African Cup of Nations appearance Coach Kaba Diawara has called up 25 players Syli National...

Mozambique coach Conde announces 23-man squad

Mozambique will make their fifth  African Cup of Nations appearance Coach Chiquinho Condé has called up 23 players The Mambas placed...

Osimhen extends contract with Napoli till 2026

Nigerian international forward Victor Osimhen has signed a contract extension with Napoli until 2026, the Serie A champions announced on Saturday....
spot_img

LEAVE A REPLY

Please enter your comment!
Please enter your name here