Fed lifts rate by quarter-point but says inflation is easing (apnews.com)
As many had predicted and markets priced into their activity, the Federal Reserve’s Federal Open Market Committee (FOMC) cut the pace of interest rate hikes by half, to 0.25 percentage points.
The Fed’s latest move brings the federal funds rate to a range of 4.5% to 4.75%, up from near zero in March, in its boldest flurry of rate increases since the early 1980s.
Chair Jerome Powell downplayed the chances of a rate cut in 2023 as the economy weakens. "Given our outlook, I don't see us cutting rates this year," he said, adding that could change if inflation moderates more quickly than anticipated.
Markets, however, predict the central bank will pause after bumping the funds rate to 4.75% to 5% in March and begin cutting it by year’s end.
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