Fed Approves Fourth 0.75-Point Rate Rise
The Federal Reserve lifted interest rates by 0.75 percentage point!
To further combat inflation and signaled plans to keep raising them, though possibly in smaller increments.
Tweet on FED rate rise by 0.75
FED Story on Charts: Markets Reaction to the Fed Decision
Compilation of charts via @FactSet on how U.S. stocks,treasury yields,dollar, gold and oil are performing after the release of the Federal Reserve's November policy decision! pic.twitter.com/XzVcOmWist
— The_Journalbiz (@the_journalbiz) November 2, 2022
FacSet chart compilation on market reaction
Fed officials in a Wednesday policy statement acknowledged it could take time for rapid increases this year to be reflected in the economy. “
The committee will take into account the cumulative tightening of monetary policy. The statement said continued rate rises were needed “to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time.”
Officials are boosting interest rates at the fastest pace since the early 1980s to reduce inflation that is running near a 40-year high. They have raised rates by 0.75 point at four consecutive meetings, with the latest one taking the central bank’s benchmark federal-funds rate to a range between 3.75% and 4%..
Before June, the central bank hadn’t raised rates by 0.75 point, or 75 basis points, at a policy meeting since 1994. Mr. Powell said after the June meeting he didn’t anticipate such increases to be common and called the move “an unusually large one.”
