<img src=”https://storage.googleapis.com/prod-zenger-storage/image/45daec8b-dc43-4af7-924d-5a77d6208c32.png” alt=”The Federal Reserve raised the federal funds rate by 0.25% to 5.25%-5.5% as widely anticipated Wednesday, pushing borrowing costs to their highest level since February 2001. GETTY IMAGES “>

The Federal Reserve raised the federal funds rate by 0.25% to 5.25%-5.5% as widely anticipated Wednesday, pushing borrowing costs to their highest level since February 2001.

This move marks a resumption of rate hikes after a brief pause in June, bringing the cumulative increase to 5.25 percentage points since the start of the tightening cycle in March 2022.

Chart: US Interest Rates Hit 5.5%, Highest Since February 2001

Key Takeways From July FOMC Statement

Market Reactions Ahead Of Powell’s Remarks

Stocks were volatile after the FOMC statement was released and before Fed Chair Jerome Powell‘s press conference.

The S&P 500 Index, as tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY), ticked marginally higher before trimming gains. Large-cap tech stocks in the Nasdaq 100 Index, as monitored by the Invesco QQQ Trust (NASDAQ:QQQ), mirrored the move.

The dollar slightly eased versus peers, with the U.S. dollar Index falling 0.15%.

Gold, as closely tracked by the SPDR Gold Trust (NYSE:GLD), rose above $1,970/oz.

Investors now anxiously await Powell’s press conference, due at 2:30 p.m. ET, to glean more information about the Federal Reserve’s stance on additional rate hikes in the remaining 2023 meetings.

Produced in association with Benzinga