Fed announces expected 0.4% rate hike - his comments are typical Powell

After raising interest rates, the Fed’s future policy remains unclear

The Federal Reserve wraps up its July Federal Open Market Committee (FOMC) meeting today, leaving just three meetings left this year. It was no surprise that the Fed raised interest rates by 14%, taking the final benchmark rate to 5·14% to 5·12%. As a result, the federal funds rate, used to determine the prime rate, reached its highest point since 2001, a 22-year high.

Much of what Chairman Powell said was expected and within bounds in terms of how he delivered his message and what he wanted to convey to the American public.

"We remain committed to getting inflation back to our 2 percent goal," Chairman Jerome Powell said at a press conference after the Fed raised interest rates. "No one should have any doubt about that."

Further comments are expected that "the Fed will assess additional information on inflation, employment and economic growth before deciding next steps." He emphasized that, as expected, the Fed will continue to be cautious and keep its options open.

However, as market participants, economists and analysts try to better understand the issue, its ambiguity and lack of clear answers keep investors from knowing more. First, is the Fed nearing the end of its rate-raising cycle?

Through the dexterity and abilities of self-proclaimed high-rope king Charles Blondin, he crossed Niagara Falls using a 2,200-foot-long wire that was just 1 inch thick, between two cranes Lifts 13 feet. At the September meeting, Powell said: "I would say if the data warrants it, we may raise rates, and we may choose to hold steady at that meeting."