In its place, the Fed inserted a more qualified statement, reminiscent of language used when it halted rate hikes in 2006, which says that “in determining the extent to which additional policy firming may be appropriate”, officials will study how the economy, inflation and financial markets behave in the coming weeks and months. The unanimous decision lifted the US central bank’s benchmark overnight interest rate to the 5 percent to 5.25 percent range, the Fed’s 10th consecutive increase since March 2022.īut the accompanying policy statement dropped language saying that its rate-setting Federal Open Market Committee still “anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time”. The US Federal Reserve on Wednesday raised interest rates by a quarter of a percentage point and signalled it may pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political standoff over the United States debt ceiling, and monitor the course of inflation.
0 Comments
Leave a Reply. |