Fed announces rate hike to 2.5%

After the Fed's interest rate meeting this morning, the Fed raised interest rates by 75 basis points to 2.25%-2.5% as expected by the market, which was the fourth consecutive rate hike and the highest level since 2019. The statement after the meeting pointed out that it is appropriate to continue to raise interest rates, but if there is a risk that may hinder the achievement of the target, the bureau will be prepared to adjust its policy stance. In addition, Chairman Powell said that it is impossible to predict the scope of monetary policy next year, and everything will depend on the data, but it may be appropriate to slow down the pace of interest rate hikes at a certain point of time. As for the interest rate before the end of the year, it may be raised to a moderately tight level, that is, about 3%-3.5%. Affected by market expectations that the Federal Reserve may slow down the pace of interest rate hikes, the US dollar weakened after the interest rate meeting.