FOMC Rate Hike Watch

Countdown to the Next FOMC Rate Hike

The CME FedWatch Tool provides a real-time look at the market's expectations for the next Federal Open Market Committee (FOMC) rate hike. The tool is based on the Fed Funds target rate, which is the interest rate at which banks lend money to each other overnight. The FOMC holds eight regularly scheduled meetings during the year and other meetings as needed. Links to policy statements and minutes are available on the FOMC website.

Key Takeaways from the FOMC Meeting

1. The FOMC voted to raise the Fed Funds target rate by 25 basis points to a range of 4.50% to 4.75%.
2. This was the eighth rate hike in the current tightening cycle, which began in March 2022.
3. The FOMC indicated that it expects to continue raising rates in the future.
4. Federal Reserve Chair Jerome Powell said that the FOMC is "committed to bringing inflation back to our 2% target."
5. The market reacted positively to the FOMC's decision, with stock prices rising.

The next FOMC meeting will be held on June 11-12, 2024. This is one of the key dates that investors will be watching in the coming months.