FOMC Meeting Highlights: Fed hikes interest rates by 25 basis points, hints at pause in tightening cycle
FOMC meeting May 2023 LIVE: Federal Reserve Chairman Jerome Powell-led Federal Open Market Committee (FOMC) announced a hike of 25 basis points in interest rates as expected, but signaled that it may pause further increases. Economists had widely expect the FOMC to decide on an increase of 25 bps in Fed funds range — the benchmark US interest rate — and that's exactly what happened. This unanimous decision of the FOMC takes the fed funds rate to a target range of 5% to 5.25% — the highest since August 2007.
The FOMC policy meeting comes at a time when central banks around the globe are struggling to balance red-hot inflation with economic growth, investors are looking for any probable signs of stress in the financial sector amid fears of recession and the US government is starting at a fast-approaching debt ceiling.
Catch minute-by-minute updates on the May 2-3 FOMC meeting LIVE, realtime market reaction and analysis, what to make of the Fed's commentary and much more only on Zeebiz.com's blog:
FOMC meeting May 2023 LIVE: Federal Reserve Chairman Jerome Powell-led Federal Open Market Committee (FOMC) announced a hike of 25 basis points in interest rates as expected, but signaled that it may pause further increases. Economists had widely expect the FOMC to decide on an increase of 25 bps in Fed funds range — the benchmark US interest rate — and that's exactly what happened. This unanimous decision of the FOMC takes the fed funds rate to a target range of 5% to 5.25% — the highest since August 2007.
The FOMC policy meeting comes at a time when central banks around the globe are struggling to balance red-hot inflation with economic growth, investors are looking for any probable signs of stress in the financial sector amid fears of recession and the US government is starting at a fast-approaching debt ceiling.
Catch minute-by-minute updates on the May 2-3 FOMC meeting LIVE, realtime market reaction and analysis, what to make of the Fed's commentary and much more only on Zeebiz.com's blog:
Latest Updates
FOMC LIVE: Markets steady after Fed's announcement of 25 bps hike
The Wall Street remained steady after Fed's announcement of 25 bps hike in interest rates. The S&P 500 was 0.1per cent higher immediately after the Federal Reserve's announcement. The hike was widely anticipated, given that it's supposed to slow the economy in hopes of getting inflation under control.
FOMC LIVE: Fed hikes interest rates by 25 basis points
The Federal Reserve's announcement of rate hike raises interest rates above 5% for the first time since 2007.
FOMC LIVE: Fed hikes interest rates by 25 basis points
The unanimous decision of the FOMC to increase the interest rates takes the fed funds rate to a target range of 5% to 5.25% — the highest since August 2007.
FOMC LIVE: Fed raised interest rates by 25 basis points
FOMC LIVE: What does Wall Street expect?
Wall Street hopes this will be the last hike to interest rates for a long time, reports AP. The reports adds that it is widely assumed the Fed will lift its key overnight interest rate again to its highest level since 2007. The Street is also wary about the clues that the Fed gives about upcoming moves.
Wall Street hopes that this will mark the end of the Fed's fastest flurry of rate hikes in decades, and give some breathing room to financial markets and the economy.
Fed has hiked key US interest rate by 475 basis points in 13 months
The Fed funding range currently stands at 4.75-5 per cent, as against 0-0.25 per cent until March 2022.
FOMC LIVE | Before May 3 decision, Fed has raised benchmark US interest rates nine times since March 2022
Did you know that the Fed began hiking key lending rates to tame inflation in the post-pandemic world in March 2022? Yes, Fed Chairman Jerome Powell has announced nine hikes during this period, four of which being of 75 basis points each.
The US central bank has, however, switched to relatively smaller increases in the US funds range, the key US benchmark interest rate, in the last two scheduled reviews.
Here's a lowdown on US rate hikes for you:
| FOMC meeting date | Revision (in bps) | Federal funds range |
| March 2, 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% |
Will Fed announce a rate hike today?
The US central bank is widely expected to announce yet another hike in the benchmark US interest rates in the current cycle of monetary tightening. The latest FOMC policy meeting comes at a time when major central banks around the globe continue to struggle against red-hot inflation amid market-wide fears of a recession triggered by turmoil in the financial sector owing to failure of some of the lenders over the past few weeks.
Welcome to Zeebiz.com's LIVE blog on FOMC's May 2023 review
Is another Fed rate hike coming? Find out 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 and how it all impacts you.
Catch LIVE FOMC policy updates and much more here