The federal open market committee of the US Federal Reserve, announced on Wednesday (22/3/2023), that it would raise the target range of the federal funds rate by 25 basis points to between 4.75 and 5%, the highest level since October 2007. It marks the ninth consecutive rate increase since March 2022.
At a news conference on Wednesday, federal reserve chair, Jerome Powell said, efforts have been made to bring inflation down to 2% over time.
The process of getting inflation back down to 2% has a long way to go and is likely to be bumpy.
The central bank leader said rate cuts are not in base case for the remainder of 2023.
The US Dollar fell noticeably in late trading on Wednesday, as market participants digested the federal reserve's latest decision on rates.