'I'm worried the Fed is going too quickly, too aggressively. They're going to break something,' said one expert.
"I'm worried the Fed is going too quickly, too aggressively. They're going to break something," said one expert.of a point for a second straight time in its most aggressive drive in three decades to tame high inflation.
The central bank's decision follows a jump in inflation to 9.1%, the fastest annual rate in 41 years, and reflects its strenuous efforts to slow price gains across the economy. By raising borrowing rates, the Fed makes it costlier to take out a mortgage or an auto or business loan. Consumers and businesses then presumably borrow and spend less, cooling the economy and slowing inflation.Federal Reserve raises benchmark interest rate by 0.
Sweet says immediately we'll see interest rates for mortgages, cars and credit cards go up, causing a multiplier effect across the economy to constrict the money supply and lowering prices."It's costing the average household $493.00 per month to buy that same basket of goods this year as they did last year. That's a tremendous burden and the Fed wants to bring that down.
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