The Federal Reserve has entered a new phase in managing the post-pandemic economic recovery by implementing what could be the fi
03 Jul 2023, 09:02
š The Federal Reserve has entered a new phase in managing the post-pandemic economic recovery by implementing what could be the final interest rate hike in a historic series. The U.S. central bank raised its benchmark overnight interest rate by a quarter of a percentage point, as expected, but removed the language suggesting further rate increases were anticipated.
š While future rate hikes are not ruled out, Fed Chair Jerome Powell expressed uncertainty about their necessity due to a combination of high inflation, signs of an economic slowdown, and potential credit tightening by banks. The focus remains on inflation and monitoring the impact of monetary policy on the economy. Powell emphasised that the rate-hike cycle may not be over yet and decisions will be made on a meeting-by-meeting basis.
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