Wednesday’s rate hike will push the federal funds rate to a range of 0.75%-1%.
Stocks rose following the announcement while Treasury yields backed off their earlier highs.in the coming months, with a possible 75-basis-point hike on the table for June.
The plan outlined Wednesday will see the balance sheet reduction happen in phases as the Fed will allow a capped level of proceeds from maturing bonds to roll off each month while reinvesting the rest. Starting June 1, the plan will see $30 billion of Treasurys and $17.5 billion on mortgage-backed securities roll off. After three months, the cap for Treasurys will increase to $60 billion and $35 billion for mortgages.
Finally, the statement addressed the Covid outbreak in China and the government's attempts to address the situation. Though some Federal Open Market Committee members had pushed for bigger rate hikes, Wednesday's move received unanimous support.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Fed poised to hike rates by half a percentage point to fight inflationThe Federal Reserve is expected to raise interest rates again Wednesday, this time by half a percentage point, in an aggressive step toward combating the highest inflation in 40 years.
Weiterlesen »
Fed raises key rate by a half-point in bid to tame inflationThe Federal Reserve intensified its drive to curb the worst inflation in 40 years by raising its benchmark short-term interest rate by an sizable half-percentage point
Weiterlesen »
Fed raises key rate by a half-point in bid to tame inflationThe Federal Reserve intensified its drive to curb the worst inflation in 40 years by raising its benchmark short-term interest rate by an sizable half-percentage point
Weiterlesen »
Fed raises key interest rate by a half-pointThe increase in the Fed’s key rate raised it to a range of 0.75% to 1%, the highest point since the pandemic struck two years ago.
Weiterlesen »
Fed raises key rate by a half-point in bid to tame inflationBREAKING: The Federal Reserve intensified its drive to curb the worst inflation in 40 years by raising its benchmark short-term interest rate by a sizable half-percentage point — its largest in 22 years.
Weiterlesen »
Fed expected to aggressively raise interest rates to tame inflationThe Fed is expected to raise interest rates this week with the biggest jump in more than 20 years as the central bank tries to get control of historic inflation.
Weiterlesen »