As expected, the FED did not increase the interest rate and kept it constant between 5.25 and 5.5%.
In the published text, it was stated that the majority of officials predicted another increase this year and that interest rates were expected to remain high for longer than expected.
Bitcoin price continues to remain stable after the decision came in the expected direction.
Now, in a classic way, FED Chairman Jerome Powell is holding a press conference and answering journalists' questions. Here are important excerpts from Powell's statement:
- The FED has to act carefully regarding interest rate increases.
- We cannot have a strong employment market without price stability.
- Growth in real GDP was above expectations.
- The Fed has come a long way, but the full effects have yet to be felt.
- Our decisions will be based on data and risk assessments.
- Consumer spending is quite strong.
- The full effects of the Fed's tightening have yet to be felt.
- High interest rates put pressure on business investments.
- Nominal wage growth showed some signs of easing.
- Labor supply and demand continue to come into better balance.
- The rebalancing in the labor market is expected to continue.
- The unemployment rate remains low at 3.8%.
- Inflation is well above target.
- The FOMC is committed to pushing inflation to 2%.
- FOMC decisions will be based on incoming data.
- Inflation remains somewhat moderate, expectations seem strong.
- Long-term inflation expectations remain well balanced.
- We are aware that inflation causes serious problems.
- There is a long road ahead for reducing inflation to 2%.
- The current policy stance is restrictive.
- We are determined to achieve and maintain a policy restrictive enough to reduce inflation to 2% over time.
- In light of our current situation, the FOMC decided to keep the interest rate constant this time.
- Fed forecasts are not a plan, policy will be adjusted depending on the situation.
- FOMC will continue to make decisions meeting by meeting.
- We are prepared to raise interest rates further if appropriate.
- The fact that we decided to keep the policy rate constant does not mean that we have reached the policy stance we wanted or not.
- The majority of policy makers believe that a new interest rate increase would be appropriate.
- We do not make a determination as to whether interest rates are sufficiently restrictive. We want to see convincing evidence that we have reached the appropriate level.
- Real interest rates are significantly positive.
- The proposal at the meeting was to maintain the current policy stance, and unanimous support was provided on this issue.
- We acted quickly on interest rate increases last year. This year we have the luxury of moving slowly and waiting for the data.
- We're pretty close to where we need to be. I wouldn't attach greater importance to an interest rate increase.
- The last three inflation data were very good, but I realize we need more than three good data.
*This is not investment advice.