Federal Reserve Statement, Fed Rate Hike, Federal Reserve Meeting Outcome: The Federal Reserve Increased interest rates by 0.25 percent in its 21-22 March Policy Meeting. The Federal Reserve has indicated that it will raise interest rates just once this year. This is the ninth time interest rates have increased since March 2022. The Federal Reserve has a soft stance on interest rates. Fed’s soft stance affected gold, silver prices. Gold, silver prices rose as the Federal Reserve showed no signs of further interest rate hike. Gold price on Comex is trading at $ 1972 and silver at $23.09.
Read Here Full Statement by Federal Reserve FOMC on Interest Rates. Federal Reserve issues FOMC statement. March 22, 2023
”The U.S. banking system is sound and resilient. Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation. The extent of these effects is uncertain. The Committee remains highly attentive to inflation risks.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 4-3/4 to 5 percent. The Committee will closely monitor incoming information and assess the implications for monetary policy. The Committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time. In determining the extent of future increases in the target range, 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. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lisa D. Cook; Austan D. Goolsbee; Patrick Harker; Philip N. Jefferson; Neel Kashkari; Lorie K. Logan; and Christopher J. Waller.”
Next Federal Reserve FOMC meeting on interest rates is on 2-3 May 2023. FOMC Minutes Meeting of March 21-22 will be issued on 12 April 2023.