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Key Takeaways From Fed Decision To Raise Rates 75 Basis Points

Here are key takeaways from the Federal Reserve's interest-rate decision and statement on Wednesday.

Key Takeaways From Fed Decision to Raise Rates 75 Basis Points
Key Takeaways From Fed Decision to Raise Rates 75 Basis Points

(Bloomberg) -- Here are key takeaways from the Federal Reserve's interest-rate decision and statement on Wednesday:

  • The Fed unanimously raises its benchmark rate by 75 basis points to a range of 2.25%-2.5%, in line with expectations, and anticipates the further increases in the target rate “will be appropriate.”

  • In its statement, FOMC acknowledges that “spending and production have softened,” yet also affirms that “job gains have been robust in recent months.”

  • Russia's war in Ukraine is adding “upward pressure” on inflation as well as weighing on economic activity, Fed says. The FOMC repeats that it's “highly attentive to inflation risks.”

  • The Fed's balance-sheet reduction process is proceeding as planned with caps on Treasury roll- off doubling to $60 billion a month in September and to $35 billion for MBS

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