The U.S. central bank’s Federal Open Market Committee convened on Wednesday and raised the federal funds rate by 50 basis points . The 0.5 percentage point rise follows the four consecutive three-quarters of a point increases codified during the last few months. The FOMC’s rate hike follows the recent U.S. inflation report which indicated that consumer prices fell to 7.1%, which was lower than expectations.Following the consumer price index reporton Tuesday, members of the U.S.
“The committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run,” the FOMC. “In support of these goals, the committee decided to raise the target range for the federal funds rate to 4-1/4 to 4-1/2 percent.” The Fed is projecting an additional 75bps hike in the federal funds rate by the end of next year.
“It will take substantially more evidence to give confidence that inflation is on a sustained downward path,” Powell told reporters on Wednesday. The news follows Tuesday’s CPI data that rose less than expected as metrics show the inflation rate in November was up 7.1% from a year ago. Core CPI jumped 0.2% on the month, the U.S. Bureau of Labor Statistics noted. “Over the last 12 months, the all items index increased 7.1 percent before seasonal adjustment,” the BLS CPI report details. The FOMC report notes that the Fed will continue to monitor “incoming information for the economic outlook.
“In addition, the committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal Reserve’s Balance Sheet that were issued in May,” the FOMC members disclosed. “The committee is strongly committed to returning inflation to its 2 percent objective,” the FOMC added.
I don't fear inflation cause I have been hodling cryptos and have got much profit with it.
Should have been 75: market would have rallied.
Of course! Because all the numbers are bull 😒 sh.t and everyone knows 🙄 that!!
Totally agree, but I only use ChiefraFba for signals and analysis