Federal Reserve Decision: Summary of the July FOMC meeting

Federal Reserve Decision

The Federal Reserve made the decision to increase the Federal Funds Rate by 0.25 percentage points, bringing it to 5.50%, the highest level since February 2021, during the meeting. The Fed acknowledged that it would take longer to reach the target inflation rate of 2%. Based on the information available at the time, which will come from two CPI and Job Reports, they intend to approach any future rate increases. The tightening measures’ full effects have not yet been felt in full. Slower economic growth and a softer labour market might be necessary to achieve the inflation target. The quantitative tightening strategy has not changed.