Federal Reserve Raises Rates by 25bps Amidst Moderate Economic Growth
The U.S. Federal Reserve has raised the federal funds rate by 25 basis points (bps) in response to moderate economic growth and to address inflation concerns, according to the latest Federal Open Market Committee (FOMC) report.
This hike comes after a previous pause and was widely anticipated, with a 99% probability predicted by CME’s Fedwatch tool. The FOMC expressed worry about tighter credit conditions potentially impacting economic activity, hiring, and inflation. The committee remains attentive to inflation risks while aiming for a 2% annual inflation rate over the longer term.
Former Fed chair Ben Bernanke and several economists suggest that this could be the final hike. The FOMC emphasizes its vigilance in monitoring economic information, indicating potential adjustments to monetary policy if necessary.
Clever Robot News Desk 28th July 2023
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