Despite the banking crisis, the Fed continued its rate hike path. While the bank increased the policy rate by 25 basis points, it signaled that the increases would continue.
The Fed increased its policy rate by 25 basis points.
In the Fed resolution text, he stated that the US banks had a solid outlook, but the effects of developments on growth would be evaluated.
The signals from the resolution text showed that the Fed would not give up on interest rate hikes despite the banking crisis that shook global markets.
The Fed also said it would continue to reduce its holdings in Treasury securities, corporate debt, and corporate mortgage-backed securities, as outlined in its previously announced plans in the text of the resolution.
With a 25 basis point rate hike, the policy rate rose to 4.75-5 percent, the highest level since 2007.
Although expectations were expressed in the market that the Fed might skip this meeting due to the banking crisis in the USA, the general expectation was that the Fed would increase the policy rate by 25 basis points.
To combat inflation, the Fed, which had increased by 75 basis points four times last year, slowed the rate of increase to 50 basis points in December and 25 basis points in February.
