Fed raises rates by 25bp as it chases lower core inflation
Policy-makers still need to “take away the punch bowl”, economist says
The Federal Open Market Committee unanimously voted to raise its target interest rate by 25 basis points today (May 3), to a range of 5% to 5.25%.
The FOMC said it would consider economic conditions “in determining the extent to which additional policy firming may be appropriate”.
The Federal Reserve removed a line from its statement, which had previously said policy-makers expect further rate hikes. Fed chair Jerome Powell called the removal of that expectation “a meaningful change”.
However
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