Federal Reserve meeting —

At its 3 May 2023 meeting, the Federal Reserve raised its policy rate from 4.75–5.00% to 5.00–5.25%. The decision passed 11-0.

Decision

hike — 4.75–5.00% to 5.00–5.25%

Vote: 11-0

Key passages

the Committee decided to raise the target range for the federal funds rate to 5 to 5-1/4 percent.

Rate hike confirms tightening stance, though size was expected.

In determining the extent to which additional policy firming may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.

Forward guidance is data-dependent, emphasizing lags and cumulative tightening—suggests a potential pause.

Meeting documents

Background reading

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