June S&P 500 futures (ESM23) are down -0.04%, and June Nasdaq 100 E-Mini futures (NQM23) are up +0.20% this morning after three major U.S. benchmark indices ended the regular session in the red as market participants digested Federal Reserve Chair Jerome Powell’s comments following the central bank’s widely expected 25 basis point rate hike.
The Federal Reserve raised interest rates by 25 basis points to a range of 5.00% to 5.25% on Wednesday, the highest level in nearly 16 years. Also, the central bank’s statement softened somewhat from March, indicating that the Fed may pause rate hikes at its June meeting. Federal Reserve Chairman Jerome Powell stated that policymakers would take a data-dependent approach in deciding on the federal funds rate. At the same time, Powell ruled out cutting interest rates because inflation was still not expected to come down quickly. The Fed chief also said that “conditions have broadly improved” in the banking sector since March.
