Fed Approves , Third-Straight , Massive Rate Hike.
On September 21, the Federal Reserve made history by approving a third consecutive 75-basis-point hike.
CNN reports that the aggressive move is meant to tackle out-of-control inflation that has been decimating America's economy.
The massive hike takes the central bank's lending rate to a new target range of 3% to 3.25%.
According to CNN, that's the highest the federal funds rate has been since the worldwide financial crisis of 2008.
The decision is likely to bring economic hardship for millions of Americans, driving the cost of borrowing higher.
While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses, Jerome Powell, Federal Reserve Chairman, via CNN.
While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses, Jerome Powell, Federal Reserve Chairman, via CNN.
These are the unfortunate costs of reducing inflation.
But a failure to restore price stability would mean far greater pain, Jerome Powell, Federal Reserve Chairman, via CNN.
According to Moody’s Analytics, consumers are now spending about $460 more per month on groceries than at the same time in 2021.
According to Moody’s Analytics, consumers are now spending about $460 more per month on groceries than at the same time in 2021.
On September 21, the Fed released its updated Summary of Economic Projections which forecast interest rates will remain high for years to come.
On September 21, the Fed released its updated Summary of Economic Projections which forecast interest rates will remain high for years to come.
The data also showed that Core Personal Consumption Expenditures, the Fed’s favored measure of rising prices, is expected to hit 4.5% this year and 3.1% in 2023.
CNN reports that the news comes amid the growing threat of a hard landing, where tightening monetary policy triggers a recession
