The US Federal Reserve on Wednesday raised its benchmark lending rate to address inflation surpassing targets. The move brought the overnight interest rate to a range of 5.25 per cent to 5.5 per cent, the highest level since 2001. The US central bank has also indicated that it will closely monitor additional data and its implications for monetary policy, suggesting the possibility of further rate increases in the future.
“The (Federal Open Market) Committee will continue to assess additional information and its implications for monetary policy,” the Federal Reserve said in its statement.
According to a Reuters report, the quarter of percentage-point increase in interest rates aligns with analysts’ predictions. It also marks the Federal Reserve’s 11th hike in the past 12 meetings. The central bank initiated this series of aggressive monetary tightening in response to escalating inflationary pressures.
As per the report, similar to its stance in June, the rate-setting Federal Open Market Committee (FOMC) used comparable language, indicating a likelihood of considering a pause in rate adjustments at their upcoming meeting in September.
‘’The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 per cent objective,” the FOMC said in its statement.
Despite weaker-than-expected inflation data since the Fed’s meeting in June, policymakers have chosen to maintain their hawkish stance, waiting for further progress in tackling inflation pressures before considering any adjustments.
Also Read: Crypto Regulatory Bill Passes US Congressional Committee: All You Need To Know
According to a Mint report, the Federal Reserve Chair Jerome Powell after in a post-policy press conference said US inflation remains “well above” the central bank’s target of 2 per cent and that it will take time to bring price increases back down. As per the report, the US consumer prices rose modestly in June, registering the smallest annual increase in more than two years even as inflation subsided further.
Additionally, the US economy continues to outperform expectations on various fronts, including a low unemployment rate of 3.6 per cent, even with the rapid rise in interest rates, the Reuters report said. As per the report, the Feds noted that the job growth remains “robust,” while the economy is growing at a “moderate” pace, a slight upgrade from the “modest” pace seen as of the June meeting.
The US Federal Reserve on Wednesday raised its benchmark lending rate to address inflation surpassing targets. The move brought the overnight interest rate to a range of 5.25 per cent to 5.5 per cent, the highest level since 2001. The US central bank has also indicated that it will closely monitor additional data and its implications for monetary policy, suggesting the possibility of further rate increases in the future.
“The (Federal Open Market) Committee will continue to assess additional information and its implications for monetary policy,” the Federal Reserve said in its statement.
According to a Reuters report, the quarter of percentage-point increase in interest rates aligns with analysts’ predictions. It also marks the Federal Reserve’s 11th hike in the past 12 meetings. The central bank initiated this series of aggressive monetary tightening in response to escalating inflationary pressures.
As per the report, similar to its stance in June, the rate-setting Federal Open Market Committee (FOMC) used comparable language, indicating a likelihood of considering a pause in rate adjustments at their upcoming meeting in September.
‘’The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 per cent objective,” the FOMC said in its statement.
Despite weaker-than-expected inflation data since the Fed’s meeting in June, policymakers have chosen to maintain their hawkish stance, waiting for further progress in tackling inflation pressures before considering any adjustments.
Also Read: Crypto Regulatory Bill Passes US Congressional Committee: All You Need To Know
According to a Mint report, the Federal Reserve Chair Jerome Powell after in a post-policy press conference said US inflation remains “well above” the central bank’s target of 2 per cent and that it will take time to bring price increases back down. As per the report, the US consumer prices rose modestly in June, registering the smallest annual increase in more than two years even as inflation subsided further.
Additionally, the US economy continues to outperform expectations on various fronts, including a low unemployment rate of 3.6 per cent, even with the rapid rise in interest rates, the Reuters report said. As per the report, the Feds noted that the job growth remains “robust,” while the economy is growing at a “moderate” pace, a slight upgrade from the “modest” pace seen as of the June meeting.
The US Federal Reserve on Wednesday raised its benchmark lending rate to address inflation surpassing targets. The move brought the overnight interest rate to a range of 5.25 per cent to 5.5 per cent, the highest level since 2001. The US central bank has also indicated that it will closely monitor additional data and its implications for monetary policy, suggesting the possibility of further rate increases in the future.
“The (Federal Open Market) Committee will continue to assess additional information and its implications for monetary policy,” the Federal Reserve said in its statement.
According to a Reuters report, the quarter of percentage-point increase in interest rates aligns with analysts’ predictions. It also marks the Federal Reserve’s 11th hike in the past 12 meetings. The central bank initiated this series of aggressive monetary tightening in response to escalating inflationary pressures.
As per the report, similar to its stance in June, the rate-setting Federal Open Market Committee (FOMC) used comparable language, indicating a likelihood of considering a pause in rate adjustments at their upcoming meeting in September.
‘’The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 per cent objective,” the FOMC said in its statement.
Despite weaker-than-expected inflation data since the Fed’s meeting in June, policymakers have chosen to maintain their hawkish stance, waiting for further progress in tackling inflation pressures before considering any adjustments.
Also Read: Crypto Regulatory Bill Passes US Congressional Committee: All You Need To Know
According to a Mint report, the Federal Reserve Chair Jerome Powell after in a post-policy press conference said US inflation remains “well above” the central bank’s target of 2 per cent and that it will take time to bring price increases back down. As per the report, the US consumer prices rose modestly in June, registering the smallest annual increase in more than two years even as inflation subsided further.
Additionally, the US economy continues to outperform expectations on various fronts, including a low unemployment rate of 3.6 per cent, even with the rapid rise in interest rates, the Reuters report said. As per the report, the Feds noted that the job growth remains “robust,” while the economy is growing at a “moderate” pace, a slight upgrade from the “modest” pace seen as of the June meeting.
The US Federal Reserve on Wednesday raised its benchmark lending rate to address inflation surpassing targets. The move brought the overnight interest rate to a range of 5.25 per cent to 5.5 per cent, the highest level since 2001. The US central bank has also indicated that it will closely monitor additional data and its implications for monetary policy, suggesting the possibility of further rate increases in the future.
“The (Federal Open Market) Committee will continue to assess additional information and its implications for monetary policy,” the Federal Reserve said in its statement.
According to a Reuters report, the quarter of percentage-point increase in interest rates aligns with analysts’ predictions. It also marks the Federal Reserve’s 11th hike in the past 12 meetings. The central bank initiated this series of aggressive monetary tightening in response to escalating inflationary pressures.
As per the report, similar to its stance in June, the rate-setting Federal Open Market Committee (FOMC) used comparable language, indicating a likelihood of considering a pause in rate adjustments at their upcoming meeting in September.
‘’The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 per cent objective,” the FOMC said in its statement.
Despite weaker-than-expected inflation data since the Fed’s meeting in June, policymakers have chosen to maintain their hawkish stance, waiting for further progress in tackling inflation pressures before considering any adjustments.
Also Read: Crypto Regulatory Bill Passes US Congressional Committee: All You Need To Know
According to a Mint report, the Federal Reserve Chair Jerome Powell after in a post-policy press conference said US inflation remains “well above” the central bank’s target of 2 per cent and that it will take time to bring price increases back down. As per the report, the US consumer prices rose modestly in June, registering the smallest annual increase in more than two years even as inflation subsided further.
Additionally, the US economy continues to outperform expectations on various fronts, including a low unemployment rate of 3.6 per cent, even with the rapid rise in interest rates, the Reuters report said. As per the report, the Feds noted that the job growth remains “robust,” while the economy is growing at a “moderate” pace, a slight upgrade from the “modest” pace seen as of the June meeting.
