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Why Did the US Federal Reserve Turn Hawkish at Its June Meeting?

Ricky Cove
Why Did the US Federal Reserve Turn Hawkish at Its June Meeting?

As expected, the Federal Reserve increased the interest rate by 25 basis points after its June meeting, which concluded on June 13. The committee increased the target range of the federal funds rate to 1.75%–2.00%, and the surprisingly hawkish tone of its statement was a far cry from the cautionary tone it struck in its previous policy statements. The decision to increase the US interest rate (AGG) was unanimous with an 8-0 vote.