The Federal Open Market Committee (FOMC) raised rates Wednesday for the first time since 2018. The U.S. central bank lifted its benchmark federal funds rate by 0.25 percent, to a target range of between 0.25 percent and 0.50 percent.
The FOMC’s press release stated, “Indicators of economic activity and employment have continued to strengthen. Job gains have been strong in recent months, and the unemployment rate has declined substantially. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices and broader price pressures."
More rate hikes are expected this year. The FOMC's revised median rate estimates were roughly in line with expectations showing a massively steeper trajectory for the federal funds rate, according to a statement by Oxford Economics. The median estimates show 175 basis points in rate hikes in 2022,
