US Fed raises key interest rate by 25 bps to 5.25-5.5%

The Federal Open Market Committee (FOMC) seeks to achieve maximum employment and inflation at the rate of 2 per cent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate.

“The Committee will continue to assess additional information and its implications for monetary policy. In determining the extent of additional policy firming that may be appropriate to return inflation to 2 per cent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. In addition, the Committee will continue reducing its holdings of treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans,” the FOMC said in a statement.

ALCHEMPro News Desk (KD)