The Federal Reserve has raised interest rates by another 75 basis points.
The effort is the latest attempt by the government to slow inflation, which remains at the highest rate in 40 years.
As CNET reports:
Raising interest rates is the main action the Fed can take to counter high inflation. When it costs more to borrow — as with credit cards, mortgages and other loans — consumers have less spending power and will buy fewer items, decreasing the “demand” side of the supply-demand equation, theoretically helping to lower prices. But the Fed hasn't been able to contain inflation yet, and experts worry that further increases to the cost of borrowing money could contract the economy too much, sending us into a recession: a shrinking, rather than growing, economy.
Fed Chair Jerome Powell addressed the decision, which came during a two-day meeting of the central bank's board of governors.
The decision to raise the rate by three-quarters of a point matched June's rate increase, which was the largest single rate increase since 1994.
Wednesday's decision was unanimously agreed upon.
Yahoo! Finance has more:
Short-term borrowing rates are now between 2.25% and 2.50%, comparable to levels in 2019.
“Recent indicators of spending and production have softened,” the Fed said in its policy announcement.
“Nonetheless, job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.”
The Fed again said that it “anticipates that ongoing increases in the target range will be appropriate.”
June's Consumer Price Index (CPI) showed that inflation surged by 9.1% on a 12-month basis.
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Their Goal Is To Kill America… this should put the ICE on the cake
If the economy is so “robust” then why does the Feds have to raise the interest rates 4 times? We are getting ripped off by the Government.
Havent they done this in the past??
It’s the feds job to control inflation. Carters was so bad they had to induce two back to back recessions to get it under control and could only do that when he lost to Reagan. I see no hope of controlling stupid Brandon’s inflation without shutting the economy down entirely. If you’re unemployed get used to it. If you aren’t you soon will be.
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