AdSitePro (https://adsitepro.com)

Fed raises key interest rate by 0.75% as it hardens fight against inflation

Fed raises key interest rate by 0.75% as it hardens fight against inflation

The Federal Reserve is accelerating key interest rate hikes in light of record-high inflation.

The Federal Reserve is accelerating key interest rate hikes in light of record-high inflation.

On Wednesday, the central bank announced a rate increase of 0.75% — a sign it is acting more aggressively to fight rising consumer prices. It's the first time since 1994 that the Fed has raised the rate that much.

The three-quarter-point hike brings the federal funds rate to between 1.5% and 1.75%. The federal funds rate dictates what it costs for banks to borrow money from each other. And, generally, higher interest rates mean it's more expensive for consumers to get a mortgage, obtain a loan to buy a vehicle and to carry a balance on a credit card.

The expected effect of these changes is that consumers will spend less and the heightened demand for goods — one of the drivers of inflation — will slow down.

The consumer price index, a key measure of inflation, came in at 8.6% last week on a year-on-year basis — hotter than expected. That triggered volatility in the stock market early this week. Notably, food price increases are hitting 40-year highs, while gas prices are also at a record-high. On Monday, the S&P 500 officially entered bear market territory.

https://www.nbcnews.com/business/economy/federal-reserve-raises-interest-rate-june-fight-inflation-rcna33358


Post ID: 3605674e-8f8d-4e49-8084-03d3243412bc
Rating: 1
Posted

Similar classified ads


Randy's other ads