BREAKING: Federal Reserve Raises Interest Rates by Quarter Point

Key Takeaways:

Unanimous Vote and Policy Shift

The Federal Reserve Board of Governors unanimously voted to raise interest rates by a quarter point, breaking away from previous signals of further hikes.

Powell's Remarks

Federal Reserve Chair Jerome Powell explained the decision in a press conference, citing improving inflation data and a strong labor market as reasons for the shift in policy.

Economic Forecast

The Fed raised its economic growth forecast for the year but lowered its inflation expectations, indicating a potential slowdown in inflation.

Rate Hike Path Unclear

The Fed's statement omitted language suggesting further rate hikes, indicating a more cautious approach to monetary policy.

Market Reaction

Financial markets reacted positively to the news, with stocks rising and bond yields falling as investors anticipate a less aggressive path of rate increases.