The Federal Reserve raised interest rates by another 0.75 percentage point on July 27 during the July Federal Open Market Committee (FOMC) policy meeting. This is in line with market expectations and similar to the historic move the central bank made in June.
The FOMC’s three-quarter-point boost lifted the benchmark fed funds rate to the range of 2.25 to 2.5 percent. It was a unanimous decision among central bank officials.
The Fed’s balance-sheet reduction efforts will continue in September, as expected. The monthly runoff caps will rise to $35 billion for mortgage-backed securities and $60 billion for U.S. Treasurys.
While the labor market has remained strong, “recent indicators of spending and production have softened,” the FOMC said in a revised statement….