Fed raises interest rates again after June pause
Powell says FOMC may increase rates again as it faces risks of both inflation and downturn
The US Federal Open Market Committee (FOMC) voted unanimously to raise interest rates by 25 basis points today (July 26).
The FOMC’s move took the federal funds rate to a target range of 5.25–5.5%, its highest for 22 years, after pausing the tightening cycle in June. The move was widely expected by analysts, with all of 106 economists polled by Reuters predicting a 25bp rise.
“We’re going to be going meeting by meeting,” Federal Reserve chair Jerome Powell said about future policy decisions.
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