Fed meeting HIGHLIGHTS: After 10 back-to-back hikes, FOMC decides unanimously to leave key US interest rate unchanged
Fed meeting HIGHLIGHTS: Federal Reserve Chairman Jerome Powell-led Federal Open Market Committee (FOMC) announced its first pause in the benchmark US interest rate since March 2022, when the US central bank began its post-COVID cycle of aggressive policy tightening. The US central banks decision on the key interest rate - formally known as the Fed funds rate, which currently stands at 5-5.25 per cent, comes a day after data showed steadily easing inflation in the worlds largest economy, supporting bets on a pause in rates for now. Catch key takeaways from the June FOMC meeting review and what to make of Fed Chair Jerome Powells remarks, and much more, only on Zeebiz.coms blog.
Fed meeting HIGHLIGHTS: Federal Reserve Chairman Jerome Powell-led Federal Open Market Committee (FOMC) decided unanimously to keep the Fed funds rate — or the benchmark US interest rate at which the Fed lends money to commercial banks — unchanged at 5-5.25 per cent, a first pause in 15 months of back-to-back increases totalling 500 basis points. The US central bank’s decision on the key interest rate was in line with the expectations of the markets as well as economists. The Fed Chair made it clear that the decision made in the meeting was only about the current review, hinting at more of hikes in the key rate should the need arise.
The status quo comes a day after data showed consumer inflation in the world's largest economy continued to ease, supporting bets on a pause in the key lending rate for now. Major central banks around the globe have already hiked interest rates rapidly and aggressively to tame red-hot inflation without damaging economic growth.
Catch highlights of the June 13-14 FOMC policy review and what to make of Fed Chair Jerome Powell’s remarks, and much more, only on Zeebiz.com's blog:
Latest Updates
Fed Chair Press Conference LIVE | Jerome Powell says it made sense to moderate rate hikes getting closer to goal
FOMC LIVE | Decision taken today only about this meeting, says Fed Chair
"We didn't make any decision about going forward including what would happen at the next meeting... We didn't decide or really discuss anything about 'going to every other meeting' kind of approach," Jerome Powell says.
Fed Chair Press Conference LIVE | Jerome Powell says longer-term inflation expectations appear to be well anchored
US economy facing headwinds from tighter credit conditions for households, businesses
The Fed Chair says that the extent of these effects remains uncertain.
Fed Press Conference LIVE | US labour market remains very tight, says Jerome Powell
Fed Press Conference LIVE | Jerome Powell says FOMC squarely focused on dual mandate
The Fed Chair says:
- The panel is strongly committed to bringing inflation under control
- Full effects of tightening have yet to be felt
Fed Policy LIVE | Price stability is Fed's responsibility; without it, economy doesn't work for anyone, says Jerome Powell
FOMC Meeting LIVE | Fed sees two small hikes by end of year
The Fed keeps benchmark interest rates unchanged but signals in new economic projections that borrowing costs will likely rise by another half of a percentage point by the end of this year.
In an effort to balance risks to the economy with a still unresolved fight to control inflation, "holding the target (interest rate) range steady at this meeting allows the committee to assess additional information and its implications for monetary policy," the FOMC says in a unanimous policy statement.
US Stock Market LIVE | Dow Jones falls 400 pts after Fed's hawkish take
The three main Wall Street gauges — the blue-chip indices Dow Jones Industrial Average and S&P 500, and the tech stocks-heavy Nasdaq Composite — succumb to red territory after the release of the Fed's hawkish message.
- Dow Jones: down 400.4 points or 1.2 per cent at 33,811.7
- S&P 500: down 25.4 points or 0.6 per cent at 4,343.6
- Nasdaq Composite: down 92.7 points or 0.7 per cent at 13,480.6
Market Update | Bonds slide as Fed reveals a hawkish pause in key rate
Fed meeting LIVE | First pause in key lending rate in 15 months
Fed holds key lending rate at 5%-5.25%
The FOMC votes unanimously on a status quo on the Fed funds rate.
Fed policy review LIVE | US benchmark interest rate left unchanged
Will Fed announce a pause in key US interest rate? Stay tuned
Fed Meeting LIVE | FOMC decision to be revealed shortly
The Fed's June review statement is due at 2 pm ET (11:30 pm in India).
Dow Jones LIVE | Wall Street subdued at open as investors await key Fed rate decision
The three main US stock market indices — the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite — are subdued in the first few minutes of trade after a lukewarm start to the day.
Here's what the market looks like at the opening tick:
- Dow Jones Industrial Average: down 167.4 points or 0.5 per cent at 34,044.7
- S&P 500: down 2.7 points or 0.1 per cent at 4,366.3
- Nasdaq Composite: down 2.8 points at 13,570.6
- UnitedHealth shares face selling pressure after insurer warns of higher medical costs
Fed policy review LIVE updates | US stock market set to open shortly
Wall Street begins trade at 1:30 pm GMT (7:00 pm in India). Follow this link to get minute-by-minute updates on all the action in US stock market as investors await the Fed's decision on key interest rate later in the day.
Dow Jones, S&P 500, Nasdaq Composite rose on Tuesday as US inflation data cemented bets on US rate hike pause
Here's how the three main US indices fared at the close on Tuesday:
- S&P 500: up 0.7 per cent
- Dow Jones: up 0.4 per cent
- Nasdaq Composite: up 0.8 per cent
The S&P 500 and Nasdaq reached their highest closes in 14 months on Tuesday after data showed consumer prices rose modestly in May.
Nvidia shares jumped 3.9 per cent, becoming the first chipmaker to end a trading session with a market capitalisation above $1 trillion after smaller rival Advanced Micro Devices gave an update on its artificial intelligence strategy that failed to impress investors. AMD shares dropped 3.6 per cent.
Dow Jones, S&P 500, Nasdaq futures indicate a mixed opening in US stock market today
The three main US stock market benchmarks — the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite — are a mixed bag at this hour, about 40 minutes ahead of the opening bell n Wall Street.
- Dow Jones futures: down 90 points or 0.3 per cent at 34,138
- S&P 500 futures: up 3.8 points or 0.1 per cent at 4,375.5
- Nasdaq Composite: up 16 points or 0.1 per cent at 14,930.3
Nifty 50, Sensex extend gains to 3rd straight day lifted by FMCG, metal stocks ahead of Fed policy decision
Indian equity benchmarks Sensex and Nifty have continued to rise for the third session in a row, aided by a rise in metal stocks on expectations of demand revival in top consumer China, ahead as investors globally await the outcome of the Fed policy review. The Nifty 50 closed with a gain of 0.2 per cent at 18,755.9 and the Sensex settled at 63,228.5, up 0.1 per cent.
Both the blue-chip indices are not far from their all-time highs.
Read more on how Sensex & Nifty fared on June 14 ahead of big Fed rate decision
Latest US Inflation Data | Consumer prices in world's largest economy barely rose in May, annual increase smallest in over two years
- Consumer prices rose 0.1 per cent in May, up 4.0 per cent on a year-on-year basis
- Core CPI gained 0.4 per cent, up 5.3 per cent on year
The latest US inflation data, released this week, supports the view that the Fed would keep the benchmark US interest rates unchanged and adopt a hawkish posture today.
In the 12 months through May, the US CPI climbed four per cent, marking the smallest year-on-year increase since March 2021, following a 4.9 per cent rise in April.
The annual CPI peaked at 9.1 per cent in June 2022 — that was the biggest increase since November 1981.
Fed Chair Jerome Powell-led FOMC has hiked key US interest rate by 500 bps in 10 revisions since March 2022
In 2023 so far, the US central bank has announced three hikes of 25 bps each — a relatively slower pace of policy tightening in comparison to the past six announcements. Here's a summary of the post-COVID cycle of rate hikes:
Date of FOMC policy announcement Change in key US lending rate (bps) Federal funds rate (the benchmark US interest rate) May 3, 2023 +25 5.00% to 5.25% March 22, 2023 +25 4.75% to 5.00% Feb 1, 2023 +25 4.50% to 4.75% Dec 14, 2022 +50 4.25% to 4.50% Nov 2, 2022 +75 3.75% to 4.00% Sept 21, 2022 +75 3.00% to 3.25% July 27, 2022 +75 2.25% to 2.50% June 16, 2022 +75 1.50% to 1.75% May 5, 2022 +50 0.75% to 1.00% March 17, 2022 +25 0.25% to 0.50% Fed policy review LIVE updates | What after the BIG rate decision at 11:30 pm India time?
The US central bank will release its policy statement and the quarterly economic projections laid out by its rate-deciding panel, the Federal Open Market Committee (FOMC) at 1800 GMT (11:30 pm in India).
Fed Chair Jerome Powell will hold a press conference 30 minutes later (the midnight of Wednesday and Thursday in India).
FOMC policy review LIVE updates | Jerome Powell to announce decision at 11:30 pm India time
The Fed is widely expected to announce what could be the first pause in the Fed funds rate — or the benchmark US interest rate — since March 2022, when the US central bank kicked off an aggressive round of monetary policy tightening. The FOMC policy review comes at a time when major central banks such as the Fed have been fighting sticky inflation with aggressive hikes in benchmark rates just enough to ensure the world economy stays in an expansionary mode.
Policymakers at the end of their two-day meeting, which began on June 13, may well signal more rate hikes are still to come once they take time to assess how the US economy is evolving, whether the financial system remains stable, and if consumer inflation is continuing to cool off.
Welcome to Zeebiz.com's LIVE blog on FOMC's June 2023 review! Will Fed Chair Jerome Powell announce the first pause in key US interest rate in 15 months?
Find answers to all your questions in realtime, along with what experts make of Fed Chair Jerome Powell-led FOMC's decision, how the markets react to it — all the action in the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite, and your most favourite US stocks — and what it all means for you.
Follow this link to catch LIVE FOMC policy updates and much more here.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.