The Clap
The Fed hiked interest rates by 0.25% in March’s meeting, setting interest rates at 4.75% – 5%.
What
In the Fed’s statement, Powell gave an indication that interest rate hikes could be coming to an end and that any future actions will largely depend on incoming data.
The Fed is still committed to bringing down inflation to its 2% target.
Powell also spoke about the recent banking system crisis and that these events were likely to lead to stricter credit conditions.
So What
Markets were down following the Fed’s statement, with the Dow Jones, Nasdaq, and S&P 500 all down around 1.60%.
Now What
Interest rates are projected to peak at 5.1%, indicating that many officials expect just one more interest rate hike.
