FOMC meeting: Fed raises interest rates again to cool record inflation
By Joseph Toppe
18:52, 27 July 2022
The US Federal Reserve announced Wednesday it would once again raise interest rates to curb the four-decade high inflation, going up 0.75% to an overall range between 2.25% and 2.5%.
Following the Fed’s decision, all three major US benchmarks are trading in the green, with the Dow Jones Industrial Average (US30) up roughly 374 points, or 1.18%, the S&P 500 (US500) up approximately 2.25%, while the Nasdaq 100 (US100) leads the index rebound, moving to around 3.76% into positive trading
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More rate hikes = increased market volatility
In an interview with Capital.com, Joey Von Nessen, research economist at the University of South Carolina’s Darla Moore School of Business, said, “The Fed has been clear that its top priority is to restore price stability – and that means continuing to raise rates until we see a meaningful reduction in the US inflation rate.”
“The slowdown will translate into a period of higher volatility for markets in the second half of the year,” he warned. “The Fed will likely stay committed to fighting inflation and to pursuing additional rate hikes, but we still don’t how much a slowing economy will impact the aggressiveness of future hikes.”
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