U.S. Economy

Federal Reserve Raises Fed Funds Rate by 25 Basis Points, Signals Possible Pause

The U.S. Federal Reserve's Federal Open Market Committee (FOMC) continued its year-plus slew of rate hikes on Wednesday, May 3, lifting the fed funds rate by 25 basis points to a targeted range of 5%-5.25%.

The U.S. Federal Reserve's Federal Open Market Committee (FOMC) continued its year-plus slew of rate hikes on Wednesday, May 3, lifting the fed funds rate by 25 basis points to a targeted range of 5%-5.25%. This latest move comes as the U.S. central bank battles stubbornly high inflation while dealing with a string of high-profile bank failures.

The Fed's move was widely expected, but investors and traders were awaiting the accompanying policy statement and Chair Jerome Powell's post-meeting press conference for clues about whether the central bank was mulling a pause after an historic run of rate hikes that's taken the fed funds rate from 0% in early 2022 to today's 5%-5.25%.

In its post-meeting statement, the central bank appeared to soften its language on future rate increases, removing a line on “additional policy firming.” In his press conference, however, Chairman Jerome Powell noted that the policy-setting committee thinks it would take time for inflation to come down, and it would not be appropriate to cut rates.

Investing Ideas

Etsy: Unusual Breakout Story amid Generally Subdued Market

Before the Covid-19 pandemic, Etsy was growing nicely by connecting craft makers with customers looking for something a bit more out of the ordinary than mainstream e-commerce fare.

U.S. Economy

Former U.S. Secretary of Labor Robert Reich Urges Bypassing Congress to Raise Debt Ceiling

Robert Reich, former secretary of labor in the U.S., has called for the government to bypass Congress in order to raise the debt ceiling unilaterally.

International

China’s Gold Splurge Reaches Sixth Month as Reserves Rise Again

Central banks across the world continued to buy gold in the first quarter, adding 228.4 tons to global reserves, up 176% YoY, data from the World Gold Council (WGC) showed on Friday.