Federal Reserve Interest Rate Decision

FOMC Policy Meeting

FOMC announces interest rate hike

After concluding a hotly-anticipated meeting, the Federal Open Market Committee (FOMC) has announced a decision to raise interest rates for the seventh consecutive time. This decision, in line with market expectations, is expected to bring the target range for the federal funds rate to 2.25% - 2.50%, a substantial increase from its near-zero level at the start of the year.

The FOMC's decision is driven by the ongoing battle against persistent inflation, which has pushed its highest level in decades. The committee believes that raising interest rates will help tame inflation by slowing economic growth and reducing demand for goods and services.

The FOMC also acknowledged the risks associated with raising interest rates too quickly, including potential job losses and a slowdown in economic growth. However, the committee believes that the risks of not addressing inflation are too great and that a steady and gradual approach to raising rates is necessary.

The full details of the FOMC's decision, including the updated policy statement and economic projections, will be released later today. Markets will be closely watching for any signals about the future path of interest rates, as the FOMC is expected to continue raising rates throughout the year.