The Federal Reserve raised interest rates by 25 basis points to a target range of 3.75%-4%, as expected, marking the first increase in US borrowing costs since July 2023.
According to the monetary policy statement on Wednesday, all members of the Federal Open Market Committee (FOMC) supported the rate hike. The decision was made in support of the Fed’s mandate.
The Fed continues its policy of maintaining ample reserves in the banking system. Economic activity is expanding at a solid pace despite elevated uncertainty, according to the statement.
Domestic spending has shown notable resilience, and productivity growth remains strong. In addition, capital investment is gaining significant momentum, and labor market gains are keeping pace with growth in the labor force.
The statement also said inflation remains elevated, and accordingly today’s action supports a return to the Fed’s 2% inflation target as soon as possible. The committee remains committed to achieving price stability.
The Federal Reserve raised interest rates by 25 basis points to a target range of 3.75%-4%, as expected, marking the first increase in US borrowing costs since July 2023.
According to the monetary policy statement on Wednesday, all members of the Federal Open Market Committee (FOMC) supported the rate hike. The decision was made in support of the Fed’s mandate.
The Fed continues its policy of maintaining ample reserves in the banking system. Economic activity is expanding at a solid pace despite elevated uncertainty, according to the statement.
Domestic spending has shown notable resilience, and productivity growth remains strong. In addition, capital investment is gaining significant momentum, and labor market gains are keeping pace with growth in the labor force.
The statement also said inflation remains elevated, and accordingly today’s action supports a return to the Fed’s 2% inflation target as soon as possible. The committee remains committed to achieving price stability.
