Fed Hikes Rates Half-Point, Will Shrink Assets to Curb Inflation

The Federal Reserve delivered the biggest hike in interest rates since 2000 and announced it would start shrinking its massive balance sheet next month, deploying the most aggressive tightening of monetary policy in decades to combat soaring inflation.

The U.S. central bank’s policy-setting Federal Open Market Committee on Wednesday voted unanimously to increase the benchmark rate by a half percentage point. It will begin allowing its holdings of Treasuries and mortgage-backed securities to decline in June at an initial combined monthly pace of $47.5 billion, stepping up over three months to $95 billion.

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https://www.bloomberg.com/news/articles/2022-05-04/fed-hikes-rates-half-point-will-shrink-assets-to-curb-inflation