The U.S. Federal Reserve on Wednesday raised interest rates by 50 basis points as it continues to slow the economy and moderate price increases.
The decision brings the federal funds target range to 4.25%-4.5%, the highest level in 15 years. Fed Chair Jerome Powell that the terminal rate – the peak rate for the current hiking cycle, expected sometime next year – will likely be over 5%.Wednesday’s rate hike by the Federal Open Market Committee , the Fed’s monetary policy panel, signals a slowdown in the pace of hikes by the Fed, which for the past four consecutive meetings has raised rates in 75 basis point increments.
Inflation as measured by the consumer price index continues to slow on a yearly basis: November’s CPI reportOfficials with the U.S. central bank had said over the past month that it might be appropriate to slow the pace of interest rate hikes while the economy adjusts to the higher level of borrowing costs. However,"ongoing increases in the target range will be appropriate," according to the FOMC statement.
For 2024, the majority of dots were put in the range of 4% to 4.25%, suggesting that rates will continue to stay elevated for a while.
HeleneBraunn Is the new set of economic projections and 'dot plot' released by the FOMC accurate?
HeleneBraunn Is the Fed's decision to slow the pace of interest rate hikes justified given the current state of the economy?
HeleneBraunn Will the rate hike have a negative impact on the price of bitcoin?
HeleneBraunn Was the rate hike decision a signal of a slowdown in the pace of hikes by the Fed?
HeleneBraunn Is the U.S. Federal Reserve's decision to raise interest rates by 50 basis points appropriate?