FILE - Federal Reserve Chair Jerome Powell speaks at a news conference Wednesday, Sept. 21, 2022, at the Federal Reserve Board Building, in Washington. The Federal Reserve may reach a turning point this week as it announces what's expected to be another substantial three-quarter-point hike in its key interest rate. The Fed's hikes have already led to much costlier borrowing rates, ranging from mortgages to auto and business loans.
So far this year, the Fed has raised its key rate five times in an aggressive pace that has sent borrowing rates surging across the economy and heightened the risk of a recession. The home market, in particular, has been badly bruised as a consequence. The average rate on a 30-year fixed mortgage, just 3.14% a year ago, surpassed 7% last week, mortgage buyer Freddie Mac reported. Sales of existing homes have dropped for eight straight months.
A ratio that high means that employers will likely continue to raise pay to attract and keep workers. Those higher labor costs are often passed on to customers in the form of higher prices, thereby fueling more inflation. Ultimately, economists at Goldman Sachs expect the Fed's policymakers to raise their key rate to nearly 5% by March. That is above what the Fed itself had projected in its previous set of forecasts in September.
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How the Fed’s rate hikes slow the economy — and impact youThe economy runs like a machine. Right now, it’s overheating: Inflation levels are at the highest in decades, with prices climbing on everything from groceries to cars to rent. Normally, the financial system, consumer spending and business activity keep the hardware running. But at times, those cogs cause glitches or kick into overdrive, and the sprawling apparatus needs to be slowed down. Let’s go Brandon! The only way to make our Country safe is to stop the Republican Senators from using this violent rhetoric behavior! The MAGA people are happy about an 82 year old man being hit with a hammer 🔨 , what if this was your grandfather? Not funny! Vote Blue and end this BS!
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Key issue as Fed meets this week: When to slow rate hikes?The Federal Reserve may reach a turning point this week as it announces what’s expected to be another substantial three-quarter-point hike in its key interest rate — its fourth straight.
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Key issue as Fed meets this week: When to slow rate hikes?The Federal Reserve may reach a turning point this week as it announces what’s expected to be another substantial three-quarter-point hike in its key interest rate — its fourth straight. kprc2 click2houston
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Key issue as Fed meets this week: When to slow rate hikes?WASHINGTON (AP) — The Federal Reserve may reach a turning point this week as it announces what's expected to be another substantial three-quarter-point hike in its key interest rate — its fourth straight . If the Fed enacts another three-quarter-point hike in the interest rate that will guarantee a recession! All this is, is Corporate Greed and record Quarterly Profits being spun as Inflation to create a weapon of Class Warfare. Powell has ties to the big lending institutions that see him personally benefit greatly. InvestigatePowell
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