25bps Rate Hike in May’s FOMC Meeting: Fed Pause on The Horizon
@Tiger_Wealth：
In a widely anticipated move, the US Federal Reserve raised interest rates for the 10th time in just over a year. The Fed fund rate now stands at a target range of 5%-5.25%, which is the highest it has been since August 2007.Source: Bloomberg During the news conference that followed the meeting, Chairman Jerome Powell confirmed that "a decision on a pause was not made today." This is despite the omission of a sentence stating that “the Committee anticipates that some additional policy firming may be appropriate." It appears that the Fed has finally reached the terminal rates it had set out to achieve. S&P 500 & Nasdaq Index, Source: Bloomberg The bond markets initially priced a rate hike in the June Fed meeting. However, the sentiment soon changed into a likely rate pause