Federal Reserve Chair Powell Discusses Monetary Policy and Economic Outlook

Five Key Takeaways from the FOMC Interest Rate Decision

News Lead

Federal Reserve Chair Jerome Powell announced that the Federal Open Market Committee (FOMC) decided to raise the target range for the federal funds rate by 25 basis points to 1.50% to 1.75%. This is a sign that the Fed is getting closer to meeting its goals of price stability and maximum employment. Powell also said that the Fed will start reducing the size of its balance sheet in June.

Here are five key takeaways from the FOMC interest rate decision and Federal Reserve Chair Jerome Powell's press conference:

1. The Fed raised the target range for the federal funds rate by 25 basis points.
2. The Fed will start reducing the size of its balance sheet in June.
3. Powell said that the Fed is "prepared to act" if inflation continues to rise.
4. The Fed is still committed to its goals of price stability and maximum employment.
5. Powell said that the Fed is closely monitoring the war in Ukraine and the impact it is having on the global economy.

The Fed's decision to raise interest rates is a sign that the economy is improving. The Fed is also taking steps to reduce the size of its balance sheet, which will help to put upward pressure on interest rates.