The Federal Reserve is expected to raise interest rates by a quarter point to 5.25-5.5%. There is still a chance of further increases this year.
The Federal Reserve raised interest rates by 1 basis point this morning as expected by the market, bringing the interest rate range to 5.25-5.5%, reaching a new high for 2022. Market volatility remained low, with the S&P 500 closing down 0.02%, while Bitcoin and Ethereum saw slight gains compared to the previous day.
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Another Rate Hike Possible Later This Year
The Federal Reserve's next meeting is scheduled for September 19-20. According to a report by Reuters, in the latest outlook, out of the 18 policymakers, 12 indicated that they expect at least one more rate hike by the end of this year to sufficiently tighten financial conditions and ensure that inflation continues to recede.
Federal Reserve Chairman Powell also mentioned:
If the data warrants it, we could of course raise rates again at our September meeting. However, that will depend on the data and economic conditions going forward.
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