December 8, 2022

The Federal Reserve on Wednesday raised its benchmark interest rate by 0.75 percentage points, the fifth time this year that the US central bank has raised interest rates while trying to pull back rates. hyperthermic hypertrophy.

The Fed’s target interest rate is now in the range of 3% to 3.25%, the highest level in 14 years. The bank’s interest rate setting body noted that inflation remained “high” and said it was “very alert to inflation risks”.

Inflation has emerged as the most pressing economic issue this year, as prices for everything from housing to groceries have outpaced increases in wages and squeeze out consumers.

Federal Reserve Chairman Jerome Powell is scheduled to hold a press conference at 2:30 p.m. ET. His remarks will be analyzed for hints as to whether the Fed expects to moderate the pace of interest rate hikes in the coming months or to continue to tighten credit significantly until it is satisfied that inflation is declining.

In August, Powell warned that Fed monetary tightening would “bring some pain” to Americans. Wall Street interpreted this to mean that the central bank would keep raising interest rates even if it hurt economic growth, including causing a recession.

This is an evolving story. The Associated Press contributed reporting.

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