Fed slows down with interest rates; six key takeaways from 2023's first FOMC meet
FOMC Meeting HIGHLIGHTS: Fed Chair Jerome Powell's post-policy comments were largely perceived to be rather dovish compared with the recent past.
FOMC Meeting HIGHLIGHTS: Fed Chair Jerome Powell-led FOMC decided to raise the benchmark US interest rates by 25 basis points — the first 25-bp increase since March 2022, with the six other raises being of a higher magnitude to the tune of 50-75 bps. The Fed's move to slow down with the upwards revision sent waves of optimism across global markets, including Dalal Street.
Fed Chair Jerome Powell's post-policy comments were largely perceived to be rather dovish compared with the recent past. Here's a look at five key takeaways from the first FOMC policy review of 2023:
FOMC Meeting HIGHLIGHTS
FOMC Meeting HIGHLIGHTS
FOMC Meeting HIGHLIGHTS
Fed bracing for growth, but slower
Jerome Powell said his "base case is that there will be positive growth this year". The US central bank has more work to do, he said. “Our focus is not on short-term moves but on sustained changes to broader financial conditions... It’s our judgment that we’re not yet at a sufficiently restrictive policy stance."
FOMC Meeting HIGHLIGHTS
Wall Street makes a smart intraday recovery
The S&P 500 finished 1.1 per cent higher, the tech stocks-heavy Nasdaq Composite jumped two per cent, and the Dow Jones finished flat, having slumped as much as 1.5 per cent during the session.
Jerome Powell's comments were largely interpreted as dovish by the markets, which had been pricing in a possible rate cut in the US second half of 2023.
FOMC Meeting HIGHLIGHTS
No red-hot inflation anymore?
What probably excited the markets the most was one comment by Jerome Powell, that "I think for the first time that the disinflationary process has started”.
This comes at a time when major central banks have been struggling to counter red-hot inflation with tighter money policies without hurting growth.