US Fed meet outcome: From rate hike to road ahead - Key takeaways from Fed decision
US Federal Reserve raised its benchmark lending rate on Wednesday to the highest level since 2001 to tackle above-target inflation, and signaled the possibility of further increases ahead. The quarter percentage-point rise lifts the key lending rate to a range between 5.25 per cent and 5.5 per cent, the US central bank said, adding that it will "continue to assess additional information and its implications for monetary policy." The rate-setting Federal Open Market Committee (FOMC) used similar language when it voted to hold rates steady in June, and the latest statement suggests that policymakers are mulling another pause at their next meeting in September.
The latest quarter percentage-point rise, which was in line with analysts' expectations, is the Fed's 11th hike since it began an aggressive campaign of monetary tightening last March in response to rising prices. Follow live updates of US Federal Reserve Meeting outcome here -FOMC members voted unanimously to hike the key lending rates in the range of 5.25 per cent - 5.50 per cent, in order to bring inflation down to the two per cent target.
US inflation remains "well above" the central bank's target of two percent, Federal Reserve Chair Jerome Powell said Wednesday, adding that it will take time to bring price increases back down. Since early last year, the US central bank has engaged in the most aggressive tightening campaign since the 1980s in an effort to curb inflation, which in 2022 hit a 40-year high.
While policymakers paused rate hikes last month to assess the impact of previous moves, they also signaled at the time that two more increases would probably be appropriate by the end of the year. The FOMC next meets on September 19-20 and subsequently on
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