The Federal Reserve increased interest rates by 25 basis points on Feb. 1, 2023, taking the U.S. Federal Funds rate to between 450 and 475 basis points.
The latest increase follows a 50 basis point increase in Dec. 2022 and a 0.75% hike in Nov. 2022.
Fed Chair Says FOMC not Swayed by Short-Term Data
While acknowledging the effects of its recent rate hikes on the economic slowdown, Fed Chair Jerome Powell said that the Open Markets Committee would not alter its course until it sees sustained changes to macroeconomic conditions in the U.S.
He added that a further rate increase would likely occur at the next FOMC meeting in March, with a pause unlikely in 2023.
“We will need substantially more evidence to be confident that inflation is on a sustained downward path,” Powell stressed. Powell added that continued quantitative tightening would permit slow but positive economic growth in the United States.
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