Fed hikes interest rates by 50 basis points in effort to combat inflation

Fed hikes interest rates by 50 basis points in effort to combat inflation


The United States Federal Open Market Committee (FOMC) concluded two days of meetings Wednesday with a widely anticipated announcement of an interest rate hike of 50 base points, or 0.5%. It is the second of an expected seven rate adjustments this year. In March, the Federal Reserve raised its benchmark rate by 25 basis points, or 0.25%, marking the first upward adjustment since 2018. 

Markets were braced for Wednesday’s hike, which was the steepest since 2000, so the immediate reaction is expected to be moderate. Fed chair Jerome Powell hinted at a 50 basis-point adjustment in a discussion hosted by the International Monetary Fund in April.

*FED RAISES RATES 50 BPS, TO START RUNOFF JUNE 1 AT $47.5B/MTH
*FED EXPECTS `ONGOING’ INCREASES IN RATES WILL BE APPROPRIATE
*FED:

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