As expected the Federal Open Market Committee announced a 75 basis point hike to the federal funds rate…
- “The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 3-3/4 to 4 percent.”
The War. The Fed, once again, pointed to the war in Ukraine as a disrupter of global commerce which is putting upward pressure on inflation, “The war and related events are creating additional upward pressure on inflation and are weighing on global economic activity. The Committee is highly attentive to inflation risks.”
Looking Ahead. With regards to future increases, the Committee said they 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.”
- The FOMC also made it clear their decision on future hikes will be based on a wide range of information. “The Committee’s assessments will take into account a wide range of information, including readings on public health, labor market conditions, inflation pressures and inflation expectations, and financial and international developments.”
The vote was unanimous.