Fed Raises Rates by a Quarter Point, Signals Pause
Key Takeaways from the FOMC Decision
Lower Inflation, Economic Growth Cited
The Federal Reserve raised interest rates by a quarter point on Wednesday, but signaled that it is pausing its rate-hike campaign. The move comes as inflation has moderated and the economy is expected to slow.
Fed Chair Powell's Press Conference
In a press conference following the decision, Fed Chair Jerome Powell said that the central bank is "committed to getting inflation back to our 2% target." However, he also said that the Fed is "aware of the risks to economic growth" and will "act accordingly."
Five Key Takeaways
Here are five key takeaways from the FOMC decision and Powell's press conference: 1. **The Fed raised interest rates by a quarter point.** This is the first rate hike since March 2020, when the Fed cut rates to near zero in response to the COVID-19 pandemic. 2. **The Fed signaled that it is pausing its rate-hike campaign.** Powell said that the Fed will "take a meeting-by-meeting approach" and will "assess the data as it comes in." 3. **The Fed cited lower inflation and economic growth as reasons for pausing its rate-hike campaign.** Powell said that inflation has "moderated" and that the economy is "expected to slow." 4. **The Fed is committed to getting inflation back to its 2% target.** Powell said that the Fed will "use its tools to achieve this goal." 5. **The Fed is aware of the risks to economic growth.** Powell said that the Fed will "act accordingly" if it sees signs of a slowdown in the economy.
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