# Fed raises interest rates half a point to highest level in 15 years

> The Federal Reserve raised its benchmark rate by half a point to a target range of 4.25% to 4.5%, the highest in 15 years. Officials projected a terminal rate of 5.1% and signaled no cuts until 2024. The move broke a run of four straight three-quarter-point hikes.

- Date: 2023-01-01 · published 2023-01-01T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/38155-fed-raises-interest-rates-half-a-point-to-highest-level-in-15-years
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Higher-for-longer U.S. rates tend to strengthen the dollar, which pressures dollar-denominated commodity prices and slows demand from credit-sensitive buyers. The hike was widely expected, so the surprise is limited.

## Read by commodity

- DXY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2025-02-28 | [USD/VND exchange rate reaches highest level in the past 5 years](https://feedsoft.ai/events/26385-usd-vnd-exchange-rate-reaches-highest-level-in-the-past-5-years.md) | -1.5% | -1.3% |
| DXY | 2023-07-27 | [(2nd LD) U.S. Fed raises key rate by 25 basis points to highest level since 2001 \| Yonhap News Agency](https://feedsoft.ai/events/35281-2nd-ld-u-s-fed-raises-key-rate-by-25-basis-points-to-highest-level-since-2001.md) | +1.2% | +1.9% |
| DXY | 2025-01-13 | [The US dollar is at its highest level in two years.](https://feedsoft.ai/events/26839-the-us-dollar-is-at-its-highest-level-in-two-years.md) | -0.3% | -0.9% |
| DXY | 2023-07-26 | [Instant View: Fed raises interest rates, leaves door open to another increase \| Reuters](https://feedsoft.ai/events/34955-instant-view-fed-raises-interest-rates-leaves-door-open-to-another-increase.md) | +0.6% | +2.1% |
| DXY | 2023-07-27 | [Instant view: ECB lifts interest rates to highest since 2000 \| Reuters](https://feedsoft.ai/events/35245-instant-view-ecb-lifts-interest-rates-to-highest-since-2000-reuters.md) | +1.2% | +1.9% |

## Sources

- cnbc.com: https://www.cnbc.com/2022/12/14/fed-rate-decision-december-2022.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.