After four straight three-quarter-point interest rate hikes, the Federal Reserve is set to announce a smaller half-point increase in its key rate Wednesday, a first step toward dialing back its efforts to combat inflation.
The Fed boosted its benchmark rate a half-point to a range of 4.25% to 4.5%, its highest level in 15 years. Though lower than its previous three-quarter-point hikes, the latest move will further heighten the costs of many consumer and business loans and the risk of a recession.The policymakers also forecast that their key short-term rate will reach a range of 5% to 5.25% by the end of 2023.
Fed officials have indicated that they see some evidence of progress in their drive to defeat the worst inflation bout in four decades and to bring inflation back down to their 2% annual target. The national average for a gallon of regular gas, for example, has tumbled from $5 in June to $3.21. And one measure the Fed tracks closely — “core” prices, which exclude volatile food and energy costs for a clearer snapshot of underlying inflation — rose only slightly for a second straight month.
One reason for caution is that inflation gauges can sometimes reignite after initially slowing. In 2021, for example, core price increases slowed for a couple of months in the summer before accelerating again and reaching new heights.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Federal Reserve set to extend inflation fight with 7th rate hike of 2022After four straight three-quarter-point interest rate hikes, the Federal Reserve is set to announce a smaller half-point increase in its key rate.
Lire la suite »
Federal Reserve set to extend inflation fight with 7th rate hike of 2022After four straight three-quarter-point interest rate hikes, the Federal Reserve is set to announce a smaller half-point increase in its key rate.
Lire la suite »
Federal Reserve set to extend inflation fight with 7th rate hike of 2022After four straight three-quarter-point interest rate hikes, the Federal Reserve is set to announce a smaller half-point increase in its key rate.
Lire la suite »
Federal Reserve set to extend inflation fight with 7th rate hike of 2022After four straight three-quarter-point interest rate hikes, the Federal Reserve is set to announce a smaller half-point increase in its key rate.
Lire la suite »
Federal Reserve set to extend inflation fight with 7th rate hike of 2022After four straight three-quarter-point interest rate hikes, the Federal Reserve is set to announce a smaller half-point increase in its key rate.
Lire la suite »
First Alert Weather Day declared for late Wednesday into Wednesday nightWednesday into Wednesday night is a First Alert Weather Day for the chance of isolated tornadoes and localized flooding.
Lire la suite »