Federal Reserve Increases Interest Rates by 25 Points
CNBC: The Federal Reserve on Wednesday approved its 10th interest rate increase in just a little over a year and dropped a tentative hint that the current tightening cycle is at an end. In a unanimous decision widely expected by markets, the central bank’s Federal Open Market Committee raised its benchmark borrowing rate by 0.25 percentage point. The rate sets what banks charge each other for overnight lending but feeds through to many consumer debt products such as mortgages, auto loans and credit cards. The increase takes the fed funds rate to a target range of 5%-5.25%, the highest since August 2007 (CNBC). Spencer Brown: As usual, the Fed reiterated its goal of returning inflation to its goal of just two percent and said the FOMC “will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments” (Townhall).
https://townhall.com/tipsheet/spencerbrown/2023/05/03/cant-be-tamed-fed-hikes-interest-rates-as-inflation-accelerates-n2622772