fed-lifts-rate-by-quarter-point-and-signals-more-hikes-ahead-–-lapresse

Fed lifts rate by quarter-point and signals more hikes ahead – LaPresse

Fed lifts rate by quarter-point and signals more hikes ahead

The Federal Reserve extended its fight against high inflation Wednesday by raising its key interest rate by a quarter-point, its eighth hike since March.

2 Febbraio 2023

According to AP, the Fed signaled that even though inflation is easing, it remains high enough to require further rate hikes.

At the same time, Chair Jerome Powell said at a news conference that the Fed recognizes that the pace of inflation has eased — a signal that it could be nearing the end of its rate hikes. The stock and bond markets rallied during his news conference, suggesting that they anticipate a forthcoming pause in the Fed’s credit tightening.

The Fed’s latest move, though smaller than its previous hike — and even larger rate increases before that — will likely further raise the costs of many consumer and business loans and the risk of a recession.

© Copyright LaPresse – Riproduzione Riservata

Related Posts

Lascia un commento

Il tuo indirizzo email non sarà pubblicato. I campi obbligatori sono contrassegnati *