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5/4/2022, 8:01 PM (Source: TeleTrader)
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US Fed raises key interest rates by 50 basis points

The United States Federal Reserve announced on Wednesday it has decided to raise the benchmark interest rate by 50 basis points.

The Fed projected a reduction of the balance sheet, which will occur in phases starting from June 1. The first phase will include trimming $30 billion of Treasuries and $17.5 billion of mortgage-backed securities per month, while the caps will be lifted to $60 billion and $35 billion, respectively, after three months.

"Over time, the Committee intends to maintain securities holdings in amounts needed to implement monetary policy efficiently and effectively in its ample reserves regime. [...] The Committee is prepared to adjust any of the details of its approach to reducing the size of the balance sheet in light of economic and financial developments," the statement read.

Baha Breaking News (BBN) / JR