Fed hikes interest rate by 25 bps as investors wait for J. Powell’s clues for rest of 2023

Fed hikes interest rate by 25 bps as investors wait for J. Powell’s clues for rest of 2023
the Federal Reserve decided to increase its policy rate by 25 basis points to 5.25–5.50%. The Fed has had a difficult time persuading the markets that they will increase interest rates at least twice more this year.

Chairman Powell’s remarks may have a substantial impact on the value of the US dollar. At the post-meeting news conference, which will begin at 18:30 GMT after the publication of the monetary policy statement, FOMC Chairman Jerome Powell will discuss the decisions made regarding the monetary policy and answer inquiries.

According to market positioning, a 25 bps increase in July is already completely priced. Despite the fact that the most recent Summary of Projections (SEP) demonstrated that the majority of policymakers believed it was appropriate to do so, investors are not as certain that the US central bank will increase the policy rate once more before the end of the year.