Highlight of the Week
Federal Reserve Raises Fed Funds Rate 25 bps
- At the July 26th meeting, the Federal Reserve announced a 25 bps increase in the Federal Funds Rate. The key benchmark rate was raised to a range between 5.25% and 5.5%, marking its highest level in 22 years.
- As US output and labor markets remain resilient, the central bank staff is no longer anticipating an economic recession in 2023.
- Prior to the FOMC’s next meeting in September, focus will be on Jerome Powell at the upcoming Jackson Hole Economic Symposium for any indication of future rate movements.
- The Federal Reserve also announced that it will continue to reduce its holding of treasury securities, agency debt, and agency mortgage backed securities at the current rate.