Fed Announces Expected ¼% Rate Hike – and His Comments Were Classic Powell

After raising rates, the Federal Reserve left its future policy unclear

There are now only three sessions left in this year as the Federal Reserve finished its July FOMC meeting today. There was no surprise when the Federal Reserve increased rates by 14%, bringing its final benchmark rate to between 5 14% and 5 12%. The Fed Funds Rate, which is used to determine the prime rate, reached its highest point since 2001, or in 22 years, as a result.

In terms of how he delivered his message and what he intended to convey to the American public, the vast majority of Chairman Powell's words were to be expected and within bounds.

In a press conference following the Fed rate hike, Chair Jerome Powell stated, "We remain committed to bringing inflation back to our 2% goal." "No one should have any doubts about that."

A further comment that was predicted was that "The Fed would assess additional information on inflation, employment, and economic growth before determining its next step." He emphasized that the Fed will continue to be cautious and leave its options open, as was to be expected.

However, the ambiguity and lack of a definitive response to the question that market players, economists, and analysts were seeking to better grasp left investors with nothing to learn more about. First and foremost, is the Fed nearing the end of the cycle of rate increases?

With the dexterity and ability of Charles Blondin, the self-declared King of the High Wire, who traversed Niagara Falls on a 2200-foot-long tightrope that was just an inch thick and hoisted 13 feet between two cranes. At the September meeting, Powell remarked, "I would say it is possible we could raise [rates] if the data warranted, and it is possible we would choose to hold steady at that meeting."