MARKET DAILY

FOMC 05/03: Real interest rate turns positive for the first time since 2019, FED opens door for policy change

"Hawkish Pause" is the term Wall Street used to describe Powell's speech this afternoon

Steve Le
Steve Le

All FOMC members voted to raise interest rates by another 0.25%, language changes prepare for policy shift

  • FED Fund Rate raised to 0.25%, peak right before the 2008 economic crisis:

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  • Real interest rate calculated by inflation returns to positive for the first time since 2019:

  • FOMC removes the part “further tightening of interest rate policy” showing signs of readiness to stop raising interest rates

  • All changes in today's press release compared to 03/22:

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