Following a two-day meeting of its monetary policy committee in Washington, the central bank announced Wednesday that it would raise its interest rate target by a quarter of a percentage point. The move comes after the Fed conducted another February hike of the same magnitude and a barrage of enormous half-point and 0.75-point increases before that.The central bank’s key overnight rate is now 4.75% to 5%.
Some economists and corporate executives were hoping for the Fed to pause its rate hiking this week, and investors thought there was a chance that the central bank would do so. However, Fed Chairman Jerome Powell has made it clear that a return to price stability is a key mission of the central bank right now.
Bill Ackman, a billionaire investor and the founder of Pershing Square, also supported holding rates steady, and Tesla CEO Elon Musk had encouraged the Fed to slash rates rather than increase them. The Fed does have some cushion to work with. The U.S. labor market is chugging along and, in some senses, defying gravity.
Source: Loan Digest (loandigest.net)
federalreserve
Wow, interest rates are now the highest they have been since 2007. So much for buying a new car or house anytime soon. ¯\\_ (ツ)_/¯
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