The US Federal Reserve (Fed) announced the results of the Federal Open Market Committee (FOMC) meeting on Wednesday (27th), raising the benchmark interest rate by 3 yards to a range of 2.25-2.50%, in line with market expectations, and reiterated the importance of curbing inflation .
FOMC members voted unanimously to raise the target range for the federal funds rate from 1.50-1.75% to 2.25-2.50%, extending the rate hike from the previous meeting in an attempt to curb the hottest rate hike in more than 40 years without causing a recession of inflation.
The FOMC statement noted that recent spending and production indicators have softened, but employment growth has been strong and the unemployment rate has remained low. At the same time, the Committee remains highly concerned about inflation risks.
The FOMC reaffirmed its long-term goals of maximizing employment and bringing inflation back to 2%, believing that it is appropriate to continue raising the funds rate target, and will adjust the stance of monetary policy if there are risks that may hinder the achievement of the target. In addition, the committee will continue to reduce its bond purchases, as it announced in May.
After the interest rate decision was released, the three major indexes strengthened during the session. Before the deadline, the Dow rose more than 200 points, the S&P rose 1.8%, the Nasdaq rose nearly 3%, the US dollar index fell, the price of gold rose slightly, the bond market reaction was mild, the 10-year US bond yield fell slightly, and the policy The more sensitive 2-year U.S. Treasury yield was near flat.
