US Fed raises rates by another 0.25%, suggests hikes to stop
The US Federal Reserve raised its interest rates by a quarter of a percentage point on Wednesday, putting them in the range of 5.0% to 5.25%.
It is the Fed’s 10th consecutive hike since March 2022, shortly after Russia’s invasion of Ukraine.
But the announcement came with a long-awaited indication that investors could see the rate hikes coming to an end.
Rather than its standard comment of recent months saying it “anticipates” further rate hikes will be needed in the near term, the Fed on Wednesday said it would monitor incoming data to determine whether further hikes “may be appropriate”. “
While that comment is far from a guarantee, it is the first time in months that the Fed has watered down what used to be a warning that investors and companies should price in more hikes in the near term.
Still, Fed Chair Jerome Powell also stressed on Wednesday that “we are prepared to do more” if that seems necessary. He said this call would be made “meeting by meeting”.
Source: DW
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