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Fed Cycle Enters Data‑Dependence Phase
Federal Reserve Chairman Jerome Powell’s message after the July meeting was that the central bank has entered a data-dependent phase after one of the fastest rate-hiking cycles on record. He spoke after the Federal Open Market Committee hiked rates 25 basis points (bps) on 26 July to 5.25%–5.50%, keeping on with its fight against still-too-high inflation. Powell signaled that future monetary policy decisions would depend fully on how the economy fares in the coming months. Changes to the statement were minimal, leaving market participants to focus on Chair Powell’s press conference. While he was clear that ... (full story)