Attention Economy


Wednesday, May 4, 2022

Fed Rate Hikes - More 50bps Hikes Ahead


Fed raises rates half a percentage point, its largest increase since 2000.
https://www.nytimes.com/2022/05/04/business/economy/fed-rate-decision-inflation.html

Fed Statement – MAY 4, 2022
https://www.federalreserve.gov/newsevents/pressreleases/monetary20220504a.htm
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. With appropriate firming in the stance of monetary policy, the Committee expects inflation to return to its 2 percent objective and the labor market to remain strong. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 3/4 to 1 percent and anticipates that ongoing increases in the target range will be appropriate. In addition, the Committee decided to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities on June 1, as described in the Plans for Reducing the Size of the Federal Reserve's Balance Sheet that were issued in conjunction with this statement.