Source: Federal Reserve
The Federal Reserve started a campaign of hiking interest rates that’s are set to be the most aggressive since the 2000s, as Chair Jerome Powell vowed to fight against inflation. DXY down -0.10%, EUR USD up +0.17%
- After hiking rates by a quarter-point, Powell informed reporters that inflation is extremely high, the labor market is overheated and price stability is a pre-condition for the Federal Reserve.
- Powell further stated that the American economy is very strong and well-poised to deal with the tighter monetary policy.
- Policymakers voted in favor of lifting their key rate to a range of 0.25% to 0.5% after two years of holding borrowing costs close to zero to protect the economy from the pandemic.
- Fed officials expect a sequence of rate hikes, finishing this year at 1.9% and almost 2.8% by the close of 2023.
- Starting June 2004 to June 2006, the Fed upgraded its benchmark from 1% to 5.25%, tightening at 17 consecutive meetings.