Fed Raises U.S. Interest Rates Again, Now At 22-Year High
deadline.comStocks closed mixed as the U.S. Federal Reserve raised interest rates again today – hike no. 11 since March of 2022, as the central bank tries to stamp down record inflation.
Federal Reserve Chairman Jerome Powell said at a press conference today after the 25 basis-point (0.25%) increase, that one positive CPI reading, in June, isn’t enough to promise there won’t be more rate hikes.
He wouldn’t be pinned down on if or when. The Fed’s key policy rate, the fed funds rate, now stands at 5.25%-5.50%, the highest point in 22 years. “Possibly, we would raise [rates] again if the data warranted at the September meeting.
And I would also say, we could choose to hold [rates] steady,” said Powell. It all, still depends on the data. The Fed will not take rate hikes off the table until subsequent CPI (Consumer Price Index) reports – show inflation is “durably down.” The hike was pretty much expected although many market players hoped for a pause, because inflation is trending lower although it’ still far from the Fed’s target 2%.
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