- The FOMC raised target rates for the federal funds rate by 75 basis points.
- Federal Reserve Chairman Jerome Powell indicated “unusually large” increases could be appropriate in future meetings.
- Powell also stated a period of economic slowdown will be necessary to restore price stability.
The Federal Open Markets Committee (FOMC) raised its target interest rate for the federal funds rate by 75 basis points, or 0.75%, on Wednesday marking the highest back-to-back rate increase since the 1980’s.
The Chairman of the FOMC and Federal Reserve, Jerome Powell, addressed the rate increase during the customary follow-up press conference.
explained that the committee’s intention is not to induce a recession. However, hints at this meeting towards continued obstacles facing the borrowers of the economy via rising rates leave little room for positive economic growth. In fact, the chairman explained that a recession is more than a probability –– it’s likely to happen due to continued rate increases.
at $22,800 at the time of reporting.