Overview

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The Federal Reserve on Wednesday raised interest rates by a quarter of a percentage point, but indicated it was on the verge of pausing further increases in borrowing The Federal Reserve cut interest rates by a quarter of a percentage point on Thursday as policymakers took note of a job market that has generally eased while inflation continues to move In one of the closest-watched Federal Reserve Board's Federal Open Market Committee (FOMC) meetings, Federal Reserve officials unanimously stated on The Fed’s Open Market Committee unanimously decided at its meeting this week to bump the federal funds rate by 25 basis points to 5.25% to 5.5%, sending rates to To fight the persistent hot inflation, the Fed has increased rates from zero to 4.50 to 4.75 per cent, all in just one year. In an expected move, America's central bank - The Federal Reserve on Wednesday pushed its policy rate up another 25 basis points to 5.00%-5.25%, as expected, in its mission to drive down inflation even as recent

Federal Reserve Expected to Raise Interest Rates by Another 25 BPS? Here's What You Need to Know

Is the Federal Reserve expected to raise interest rates again? All eyes are on the next Federal Open Market Committee (FOMC) meeting as speculation swirls around a potential 25 bps (basis points) increase. Recent economic data, particularly regarding inflation and the job market, will heavily influence the Fed's decision. In one of the closest-watched Federal Reserve Board's Federal Open Market Committee (FOMC) meetings, Federal Reserve officials unanimously stated on...

The Fed's Recent Actions: A Review

To fight the persistent hot inflation, the Fed has increased rates from zero to 4.50 to 4.75 per cent, all in just one year. America's central bank - The Federal Reserve on Wednesday pushed its policy rate up another 25 basis points to 5.00%-5.25%, as expected, in its mission to drive down inflation even as recent figures show some cooling. This aggressive tightening cycle reflects the Fed's commitment to price stability.

Potential Impact of a 25 BPS Rate Hike

A further 25 bps rate hike could have several impacts: increased borrowing costs for consumers and businesses, potentially slowing economic growth, and influencing inflation expectations. It's a delicate balancing act for the Fed as they aim to curb inflation without triggering a recession.

The Fed's Stance: Pausing or Continuing?

The Federal Reserve on Wednesday raised interest rates by a quarter of a percentage point, but indicated it was on the verge of pausing further increases in borrowing. This suggests the Fed is carefully considering the potential risks of further tightening. However, it's crucial to monitor economic indicators closely to anticipate the Fed's next move.

Earlier Rate Cuts: A Different Landscape

The Federal Reserve cut interest rates by a quarter of a percentage point on Thursday as policymakers took note of a job market that has generally eased while inflation continues to move. This previous action highlights the Fed's responsiveness to changing economic conditions, and demonstrates their flexibility to respond to inflationary or deflationary pressures.

Current Rate Targets

The Fed’s Open Market Committee unanimously decided at its meeting this week to bump the federal funds rate by 25 basis points to 5.25% to 5.5%, sending rates to [this level]. The market is now trying to gauge the probability of the Fed implementing the final rate hike of the current economic cycle, or rather continuing to hike interest rates well into 2024.

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