0.25% Rate Hike, The Impact of the Federal Reserve's Monetary Policy Decision on the U.S. Economy - March 22, 2023
On March 22, 2023, the Federal Open Market Committee (FOMC) announced its decision to raise the target range for the federal funds rate to 4-3/4 to 5 percent. This decision was made based on recent indicators of modest growth in spending and production, robust job gains, and elevated inflation. The FOMC's goal is to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the FOMC directed the Open Market Desk at the Federal Reserve Bank of New York to undertake open market operations as necessary to maintain the federal funds rate in the target range of 4-3/4 to 5 percent. Additionally, the FOMC directed the Desk to conduct standing overnight repurchase agreement operations with a minimum bid rate of 5 percent and with an aggregate operation limit of $500 billion. The FOMC also directed the Desk to conduct standing overnight reverse repurchase agreement operations at an offering rate of 4.8 percent and with a per-c...