President Joe Biden said the government will pay down its national debt for the first time since 2016.WASHINGTON -- The Federal Reserve intensified its fight against the worst inflation in 40 years by raising its benchmark short-term interest rate by a half-percentage point Wednesday — its most aggressive move since 2000 — and signaling further large rate hikes to come.
All told, the Fed’s credit tightening will likely mean higher loan rates for many consumers and businesses over time, including for mortgages, credit cards and auto loans. With prices for food, energy and consumer goods accelerating, the Fed’s goal is to cool spending — and economic growth — by making it more expensive for individuals and businesses to borrow. The central bank hopes that higher borrowing costs will slow spending enough to tame inflation yet not so much as to cause a recession.
Inflation, according to the Fed's preferred gauge, reached 6.6% last month, the highest point in four decades. Inflation has been accelerated by a combination of robust consumer spending, chronic supply bottlenecks and sharply higher gas and food prices, exacerbated by Russia's war against Ukraine. The Fed’s credit tightening is already having some effect on the economy. Sales of existing homes sank 2.7% from February to March, reflecting a surge in mortgage rates related, in part, to the Fed’s planned rate hikes. The average rate on a 30-year mortgage has jumped 2 percentage points just since the start of the year, to 5.1%.
For now, with hiring robust — the economy has added at least 400,000 jobs for 11 straight months — and employers grappling with labor shortages, wages are rising at a roughly 5% annual pace. Those pay raises are driving steady consumer spending despite spiking prices. In March, consumers increased their spending 0.2% even after adjusting for inflation.
Does anyone know what the root of ALL EVIL is?
It won't happen, in a world without the real super power Russia vivaPutin longlivePutin
If i were in charge i would simply expropriate the assets of the rich
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: FOX10News - 🏆 581. / 51 Read more »
Source: MarketWatch - 🏆 3. / 97 Read more »
Source: FOX26Houston - 🏆 448. / 53 Read more »
Source: washingtonpost - 🏆 95. / 72 Read more »
Source: abc7newsbayarea - 🏆 529. / 51 Read more »