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.
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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.”