US Federal Reserve raises benchmark rate, job market remains strong but challenges persist
During their Wednesday meeting, the Federal Reserve opted to raise their benchmark rate by 25 bps, pushing it to a range of 5%-5.25%. This is expected to mark the end of the Fed's rate hike cycle, according to market estimations. Recent employment data revealed that the economy added 253,000 jobs in April, exceeding expectations by a significant margin, with the unemployment rate dropping to 3.4%, the lowest it has been since 1960. Hourly wages also exceeded predictions, increasing by 0.5% in comparison to the previous month. Despite regulators' attempts to address confidence issues, regional banks continue to experience pressure. The Federal Deposit Insurance Corporation (FDIC) suggested potential reforms to prevent the outflow of deposits from vulnerable institutions, but these reforms would require congressional approval and may take some time to come into effect.