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Livelife Forever
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Asked: 2024-05-11T17:41:45+00:00 In:

What is US Federal Reserve standing?

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What is US Federal Reserve standing?

This question seeks to assess the current position and actions of the US Federal Reserve, including its monetary policy decisions and economic indicators, reflecting the importance of understanding central bank policies for investors, policymakers, and the general public.

economicindicatorsfedinterestratesfedpolicymonetarypolicyusfederalreserve

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  2. Heena Umar
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    the Federal Reserve has continued raising interest rates in an effort to combat inflation. Specifically:

    • The Federal Open Market Committee (FOMC), which is the Fed’s monetary policymaking body, has set a new target range for the federal funds rate of 5.25% to 5.5%.
    • This represents a 0.25 percentage point increase from wherever the previous target range was set prior to May 2, 2024.
    • By raising the federal funds rate, which is the interest rate banks charge each other for overnight lending, the Fed is continuing to tighten monetary policy and make borrowing more expensive across the economy.

    The magnitude of this rate hike suggests the FOMC still viewed upward inflationary pressures as a significant risk as of early May 2024 and felt further policy tightening was warranted, even at potential risk of slowing economic growth.