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The Fed Raises Rates Again, OPEC+ Decision & Musk’s Proposal Sends Twitter Lower

S&P 500 up, as Federal Reserve increases rates by 0.5%

U.S. indices were marginally higher on Wednesday, as it was announced that the Fed would be increasing rates, again.

The FOMC followed up on April’s hike, with a 0.5% increase of rates today, which is the largest in over two decades.

Today’s hike comes as inflation continues to track at record levels, which has at times unsettled markets.

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Following the decision, a statement read, “Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures”.

The Fed went on to provide further guidance on future action, adding, “In support of these goals, the Committee decided to raise the target range for the federal funds rate to 3/4 to 1 percent and anticipates that ongoing increases in the target range will be appropriate”.

OPEC+ set to maintain oil output, despite proposed Russian embargo

Whilst the Fed updated their monetary policy, reports today suggested that OPEC will maintain its policy on oil output.

OPEC+ which includes Russia, is set to meet on Thursday and are expected to agree to raise production by 432,000 barrels per day, which is in accordance with its existing deal.

This increase will take place from June and is part of last July’s deal where it was agreed that output targets would be increased by 432,000 bpd every month until the end of September.

News of this comes even though the EU has proposed a Russian oil embargo, as it moves towards its sixth round of sanction.

Speaking today, European Commission President Ursula von der Leyen said, “Some member states are strongly dependent on Russian oil. But we simply have to work on it. We now propose a ban on Russian oil. This will be a complete import ban on all Russian oil, seaborne and pipeline, crude and refined”.

Twitter lower, as Musk proposes fee for commercial accounts

Twitter stock was marginally lower during today’s session, as Elon Musk tweeted about potential changes to the company’s payment plans.

In a series of tweets last night, Musk stated, “Twitter will always be free for casual users, but maybe a slight cost for commercial/government users”.

This comes as Twitter’s board accepted Musk’s bid to take over the company last week.

Since going public over ten years ago, twitter has struggled to grow revenue, and this could change with new ownership.

 Musk added, “Some revenue is better than none!”. As of writing, $TWTR was trading marginally lower.

 “We are in the business of making mistakes. Winners make small mistakes; losers make big mistakes.”

-Ned Davis.

Eliman Dambell

Senior Market Analyst