- Equity markets breathed a sigh of relief that the FOMC raised its target federal funds rate range by only 50 basis points, to 0.75%–1.0%, instead of the 75 basis points that some had feared.
- The Dow Jones surged 932 points after the meeting, the largest increase since 2020. The Committee not only raised interest rates but also announced its intention to reduce the size of its balance sheet.
- Powell made it clear that at this time, the path for the economy was uncertain, making forward guidance on future policy not very meaningful.
For further details see:
The May 2022 FOMC