Fed Hikes Rates 50 Basis Points, Punts Balance Sheet Reduction to June 1st

The Federal Reserve increased the Federal Funds rate to a range of 0.75-1.00 percent. The 50 basis-point rate hike was largely expected. Powell shot down any talk of a 75 basis-point hike. Jerome Powell also announced that balance sheet reduction would begin June 1st. The FOMC statement. "The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. With appropriate firming in the stance of monetary policy, the Committee expects inflation to return to its 2 percent objective and the labor market to remain strong. In support [...]