The Federal Reserve recently raised its benchmark interest rate by 25 basis points, bringing the target range to 4.5%-4.75%, the highest since October 2027. It marks a slowdown from December’s rate hike of 50 basis points. While Fed Chair Jerome Powell acknowledged that the “disinflationary process has started,” he also cautioned that it would be very premature to declare victory in the battle against inflation.
Furthermore, the January jobs data showed that nonfarm payrolls rose by 517,000, exceeding the 187,000 market estimate. The unemployment rate fell to 3.4%.
