Fed Chair Jerome Powell said the 'meaningful change' shows that the Fed is no longer anticipating future hikes, but he stopped short of pausing increases.
The Federal Reserve's decision to remove a sentence about future rate increases in its latest statement has many hoping that this week's bump will be the last for the foreseeable future.
Noticeably absent from the statement was a previous line that said the central bank"anticipates" additional policy firming, marking a shift from the last few months when the Fed assumed that additional increases would be necessary. Federal Reserve Board Chairman Jerome Powell delivers remarks at a news conference following a Federal Open Market Committee meeting on May 3, 2023, in Washington, D.C. The Federal Reserve announced a 0.25 rate increase, bringing the key federal funds rate to more than 5 percent, a 16-year high."We'll be driven by incoming data and we'll approach that question at the June meeting," Powell said.
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