Five Takeaways From the Federal Reserve's Interest-Rate Meeting and Press Conference
Rate Hike and Policy Shift
The Federal Open Market Committee (FOMC) unanimously voted on Wednesday to raise interest rates by a quarter point, marking the eighth rate hike since March 2022. However, the statement accompanying the decision omitted the previous language suggesting more hikes were on the horizon.
Powell's Remarks
In his press conference following the meeting, Fed Chair Jerome Powell downplayed the significance of the pause in rate hikes, saying that it should not be seen as a "skip" in the tightening cycle. Powell emphasized that the Fed still has a way to go in its fight against inflation and that rate cuts are still a few years away.
Five Key Takeaways
Here are five key takeaways from the Fed's decision and Powell's press conference:
- The Fed raised interest rates by a quarter point.
- The Fed omitted language from its statement signaling more rate hikes were ahead.
- Powell said the June pause in rate hikes should not be seen as a skip.
- Powell emphasized that the Fed is still committed to bringing inflation back down to its 2% target.
- Rate cuts are still a few years away.
The FOMC will hold its next meeting on July 19-20. The Committee reviews economic and financial conditions at its eight regularly scheduled meetings each year.
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