Fed Elects To Skip Rate Hike at September 2023 FOMC Meeting

For the second time in four months, the central bank decided to not increase interest rates but indicated another hike in 2023 is likely.

  • The Federal Reserve (Fed) elected to skip raising the federal funds rate at the September 2023 Federal Open Market Committee (FOMC) meeting.
  • One more rate hike in 2023 is likely, either at the October/November or December meeting.
  • It is the second skip in four months by the Fed, which ended its run of 10 consecutive interest rate hikes dating back to March 2022 in June.
  • The federal funds rate remains 5.25%-5.50% and the Fed's cumulative total increase holds at 525 bps since March 2022, with a total increase of 100 bps occurring in 2023.
  • Fed Chair Jerome Powell reaffirmed that the central bank is strongly committed to bringing inflation down to its 2% target.