The Fed rises rates on 50 BPS

Key points:

• Federal Reserve raised interest rates by another 50 basis points. 
• This is the most aggressive economic austerity in 30 years, and it's still going on.
• News of the Fed raising interest rates by another 50 basis points came after hints that policy easing may be imminent.
• Fed Chairman Jerome Powell also indicated that rate hikes would taper off. So, 50 basis points come into play, a testament to the sentiment.

The trend continued as the Federal Reserve raised interest rates by another 50 basis points. Jerome Powell has signaled that the Fed plans to slow the pace of rate hikes this month while continuing to cut rates at its final meeting of the year.

In November, the Fed raised interest rates by 0.75 percentage points, the fourth straight rate hike since May. However, the 0.50 percentage point increase marked a slight divergence, making it the fifth straight month of decline.

The Fed hikes rates again.

This is the most aggressive economic austerity in 30 years, and it's still going on. News of the Fed raising interest rates by another 50 basis points came after hints that policy easing may be imminent.

When the Fed raised rates in November, it marked the highest borrowing costs since the Great Recession. Moreover, the move was taken to combat rising inflation in the country. Subsequent increases will only increase that number.

At the same meeting in November, the Fed raised interest rates to a target range of 3.75% to 4%. Instead, the figure remains at its highest level since early 2008. The hike marked the first 75 basis point rate cut since May, which appeared to represent a modest improvement.

This follows an upbeat performance from the Fed at its November meeting. They acknowledged "the lag with which monetary policy affects economic activity" by explaining the pace of rate hikes enacted today.

At the last meeting, Fed Chairman Jerome Powell also indicated that rate hikes would taper off. So, 50 basis points come into play, a testament to the sentiment. Also, this December 14th meeting marks their final year.