After the Interest Rate Decision, FED Chairman Jerome Powell Makes a Statement! Here’s What They Said

President Jerome Powell is making a statement after the Fed announced a 0.75 basis point rate hike in the USA. Here are the excerpts from his speech:

• We are determined to bring inflation to its 2 percent target. We continue to reduce inflation with determination.
• Our basic principle is price stability.
• We will deliberately change the policy position.
• Since 2021, the US economy has slowed.
• We will increase the level of restraint in the policy.
• The Fed wants interest rates to be “sufficiently restrictive”.
• The real estate market has declined significantly. Weak foreign economic growth limits exports. The labor market continued to be extremely tight.
• We expect supply and demand conditions in the labor market to improve over time.
• Respondents still think that inflation is at risk of rising.
• We want to see evidence of inflation coming down in the coming months. Interest The rate of increase will depend on inflation data.
• One year from now, no one knows where the economy will be. The restrictive policy stance should continue for a while in order to bring inflation to target levels.
• Inflation expectations seem to be on solid ground.
• Ultimately, it would be wise to slow down the rate of increase in interest rates.
• We will continue to increase interest rates until inflation reaches its 2 percent target. We need to be absolutely sure that inflation goes to 2 percent before we cut interest rates.

Fed Chairman #powell: We are determined to bring inflation to its 2 percent target.

— Bitcoin System (@bitcoinsystem) September 21, 2022

Following the rate decision, the FED increased its median policy rate forecast for 2022 from 3.4% to 4.4%.

After Jerome Powell’s speech of bitcoin His first moves are:

FED and Jerome Powell Made an Increase by 0.75 Points in Benchmark Interest Rates

The Fed increased benchmark interest rates by another 0.75% on Wednesday and indicated that it would continue to raise it well above the current level.

In its quest to reduce inflation, which is approaching its highest levels since the early 1980s, the Fed increased the fed funds rate to the 3%-3.25% range, the highest level since early 2008, after the third consecutive 0.75 percentage point move.

#FED increased the interest rate by 75 basis points.

(Expected was 75 basis points)#Bitcoin

— Bitcoin System (@bitcoinsystem) September 21, 2022

The increases, which started from a near zero point in March, mark the most aggressive tightening of the Fed since 1990 when it started using the overnight funds rate as its main policy instrument.

The only example that can be compared is the period when the Fed increased interest rates by a total of 2.25 points in 1994 and started to cut interest rates as of July the following year.

With the massive rate hikes, Fed officials have signaled their intention to continue raising rates until the funding level reaches a “final rate” of 4.6% in 2023.

The “dot graph” of individual members’ expectations does not point to a rate cut until 2024. Fed Chairman Jerome Powell and his colleagues have stressed in recent weeks that rate cuts are unlikely to happen next year, as the market has priced in.

Federal Open Market Committee members say they expect rate hikes to have consequences. While the funds rate refers to the interest rates banks charge each other for overnight lending, it is also reflected in many consumer adjustable-rate debt instruments such as home loans, credit cards and auto financing.

*Not investment advice.