Federal Reserve meeting —

At its 4 May 2022 meeting, the Federal Reserve raised its policy rate from 0.25–0.50% to 0.75–1.00%.

Decision

hike — 0.25–0.50% to 0.75–1.00%

Key passages

the Committee decided to raise the target range for the federal funds rate to 3/4 to 1 percent

First 50bp hike since 2000, signaling aggressive tightening.

the Committee decided to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities on June 1

Quantitative tightening starts, reducing accommodation.

Meeting documents

Background reading

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