The Federal Open Market Committee (FOMC) held a joint meeting with the Board of Governors of the Federal Reserve System. During this second of eight scheduled meetings this year, members reviewed U.S. financial conditions and the nation’s economic situation.

The Federal Reserve has launched its instant payments system, the FedNow Service, which allows banks and credit unions to instantly transfer money for their customers at any time of the day, any day of the year. As of right now, 35 early adopting banks and credit unions, as well as the Bureau of the Fiscal Service of the U.S. Department of the Treasury, are prepared to accept instant payments through the FedNow Service.

The Federal Reserve held firm on its target federal funds rate, keeping it within a range of 5.00% to 5.25%.

The Federal Reserve started a practice last year that continues in 2023 to combat inflation by increasing short-term interest rates. The Federal Open Market Committee (FOMC) earlier this month set the rate at a range of 5% to 5.25%.

JPMorgan CEO Jamie Dimon predicts that more bank failures could be incoming, an assessment the the Library of Economics and Liberty (EconLib) agrees with.

On May 3, the Federal Reserve increased interest rates for the tenth time in 14 months but withdrew from its earlier predictions of additional rate hikes.