Fed Raised Rates By 25 Bps

Key Insights

• Fed raised the federal funds rate to 500 – 525 bps. 
• The central bank noted that the job market remained strong. 
• Fed remains committed to its 2% inflation target. 

On May 3, Fed released FOMC statement. The Fed decided to raise the target range for the federal funds rate to 500 – 525 bps, in line with the analyst consensus.

In its statement, the Fed noted that job gains had been robust in recent months while the unemployment rate had remained low. The Fed has also expressed its confidence in the U.S. banking system.

There is no material reaction in the stock market, and SP500 has settled near the 4130 level.

Gold moved above the $2030 level as traders bet on dovish comments from Jerome Powell, whose press conference starts soon.

U.S. Dollar Index made an attempt to settle below the 101.10 level. Traders should note that markets will remain volatile during Powell’s press conference.

For a look at all of today’s economic events, check out our economic calendar.