The US Federal Reserve (Fed) announced on Wednesday that it raised the policy rate, federal funds rate, by 25 basis points to the range of 4.75-5% following the March policy meeting. This decision came in line with the market expectation.
The beginning of the end of the fight against inflation – that has been the Federal Reserve's message while it has raised rates by 25 bps. Investors willfully ignore the bank's forecasts for ending 2023 with rates above 5% – no change from December.
The FOMC raised the funds rate by 25bp to 4.75-5%, against our expectation of a pause, but projected a weak economic outlook for the rest of 2023 and a more cautious path for the funds rate than Chair Powell had indicated was likely before the recent banking turmoil.
The Federal Reserve hiked its benchmark rate by 25 bps in a unanimous decision but softened its tone on further increases. We are getting very close to terminal, in the opinion of economists at RBC Economics.
The Fed in its 21/22 Mar 2023 FOMC meeting, unanimously agreed to keep to its rate hike pace of 25bps, same as Feb FOMC, lifting the Fed Funds Target Rate (FFTR) from 4.75% to 5.00%.
A hawkish downshift – the United States Federal Reserve has raised rates by 25 bps, lower than 50 in December 2022 and 75 beforehand. However, it is pushing back against declaring victory against inflation. Moreover, Fed Chair Jerome Powell does not like market pricing of rate cuts in 2023.
The US Federal Reserve on Wednesday announced that it raised the policy rate, federal funds rate, by 50 basis points to the range of 4.5-4.75% following the first policy meeting of 2023. This decision came in line with the market expectation.
This is the "end of the beginning" in the war against higher inflation – yet markets will likely see the beginning of the end, as they are always looking forward. The Federal Reserve has raised rates by a double-dose of 50 bps, below the four triple-dose 75 bps hikes. While borrowing costs are still rising, hopes for them falling are rising.
The US Federal Reserve on Wednesday announced that it raised the policy rate, federal funds rate, by 50 basis points to the range of 4.25-4.5% following the December monetary policy meeting. This decision came in line with the market expectation.
The Fed is data dependent – that is the sole message traders need to take from the critical rate decision. The central bank raised borrowing costs by 75 bps for the fourth consecutive time, but markets were already looking into December. That explains the cheerful market reaction.
The US Fed on Wednesday announced that it raised the policy rate, federal funds rate, by 75 bps to the range of 3.75-4% following the November monetary policy meeting. This decision came in line with the market expectation. The dollar came under renewed selling pressure and the US Dollar Index declined below 111.00 with the initial reaction.
EUR/USD has gained traction and advanced toward 1.0800 in the early American session on Monday. The positive opening witnessed in Wall Street makes it difficult for the US Dollar to find demand and helps the pair continue to push higher.
GBP/USD has preserved its bullish momentum and advanced to the 1.2300 area in the second half of the day on Monday. The risk positive market atmosphere makes it difficult for the US Dollar to stay resilient against its rivals and fuels the pair's daily rally. Eyes on BOE Governor Bailey's speech.
BABA shareholders begin the week with a glimmer of hope after founder Jack Ma was seen visiting China after spending more than one year abroad. The report originally led to Alibaba's shares in Hong Kong rising 4% before subsiding.
Gold price has extended its daily slide and dropped below $1,950 in the early American session. Amid easing fears over a global banking crisis, the benchmark 10-year US Treasury bond yield rebounded above 3.5% on Monday, weighing heavily on XAU/USD.
SushiSwap price undid the early March gains in the last week after the SEC subpoenaed the platform’s head chef Jared Grey. As a result of this announcement, the token collapsed by roughly 18%.
With a pre-set regularity, a nation's Central Bank has an economic policy meeting, in which board members took different measures, the most relevant one, being the interest rate that it will charge on loans and advances to commercial banks.
In the US, the Board of Governors of the Federal Reserve (FED) meets at intervals of five to eight weeks, in which they announce their latest decisions. A rate hike tends to boost the local currency, as it is understood as a sign of a healthy inflation. A rate cut, on the other hand, is seen as a sign of economic and inflationary woes and, therefore, tends to weaken the local currency.
If rates remain unchanged, attention and also main news and analysis turn to the tone of the FOMC (Federal Open Market Committee) statement, and whether the tone is hawkish, or dovish over future developments of inflation.
The Federal Reserve System (Fed) is the central banking system of the United States and it has two main targets or reasons to be: one is to keep unemployment rate to their lowest possible levels and the other one, to keep inflation around 2%. The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors, partially presidentially appointed Federal Open Market Committee (FOMC). The FOMC organizes 8 meetings in a year and reviews economic and financial conditions. Also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. FOMC Minutes are released by the Board of Governors of the Federal Reserve and are a clear guide to the future US interest rate policy.
Fed official website, on Twitter and Facebook
Jerome Powell
Jerome Powell took office as chairman of the Board of Governors of the Federal Reserve System in
February 2018, for a four-year term ending in February 2022. His term as a member of the Board of Governors will
expire January 31,
2028. Born in Washington D.C., he received a bachelor’s degree in politics from Princeton University in 1975 and
earned a law degree from Georgetown University in 1979. Powell served as an assistant secretary and as
undersecretary of the Treasury
under President George H.W. Bush. He also worked as a lawyer and investment banker in New York City. From 1997
through 2005, Powell was a partner at The Carlyle Group.
Jerome Powell Fed's Profile and Wikipedia
The World Interest Rates Table reflects the current interest rates of the main countries around the world, set by their respective Central Banks. Rates typically reflect the health of individual economies, as in a perfect scenario, Central Banks tend to rise rates when the economy is growing and therefore instigate inflation.
