The Fed raises interest rates by 0.25%
In a unanimous decision at its 22 March meeting and as expected, the Federal Reserve brushed aside concerns about the state of the US banking system and the risk of financial instability, raising interest rates by 0.25% to the range 4.75% - 5%. However, it changed its language in a dovish direction. While it previously said that “ongoing increases in the target range will be appropriate” it softened that to “some additional policy firming may be appropriate". Chair Powell emphasised in the press conference the words “some” and “may” and that this change in language was due to the high degree of uncertainty arising from recent banking tensions.
