Yikes! The Interest Rates Went Up🙄

Federal reserve chairman Jerome Powell on Wednesday ruled out a 0.75% move higher in interest rates in the immediate future.

The central bank chief's commentary took stream out of market speculation that the Fed would further ratchet up its pace of tightening

The Commentary coincides with the Fed's decision to raise short-term rates by 0.50%. The Fed has not increase interest rates in increments larger than 0.25% since May 2000.

Powell said further 0.50% moves "should be on the table at the next couple of meetings" (in june and july)

"A 75-basis-point increase is not something the committee is actively considering." Powell said

Although most Fed watchers had expected the central bank to move by 0.50% this week, markets had begun pricing in the odds of 0.75% moves in future meetings

Last month, ST. Louis Fed President James Bullard said the Fed shouldn't rule out a 0.75% move - although he did not see the case for one at the moment. Bullard, a voting member of the policy-setting Federal open market committee, supported the 0.50% interest rate bump on Wednesday.

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