Fed raises benchmark interest rate by 0.75 percent

By Christopher Rubager | Associated Press

But in a statement, the Fed suggested that it might soon shift to a more deliberate pace of rate increases. It said that in coming months it would consider the cumulative impact of its large rate hikes on the economy. It noted that its rate hikes take time to fully affect growth and inflation. The Fed’s statement Wednesday was released after its latest policy meeting. Many economists expect Chair Jerome Powell to signal at a news conference that the Fed’s next expected rate hike in December may be only a half-point rather than three-quarters.

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. Several Fed officials have said recently that they have yet to see meaningful progress in their fight against rising costs. Inflation rose 8.2% in September from 12 months earlier, just below the highest rate in 40 years.

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How High Will Interest Rates Go? - The Journal. - WSJ PodcastsFor months the Federal Reserve has been raising interest rates at a fast and furious pace to combat inflation. Now some Fed officials are advocating for a slower, steadier approach. WSJ’s Nick Timiraos explains the debate within the Fed over just how high interest rates should go. Further Reading: -Two Fed Officials Make Case for Caution With Future Interest Rate Raises -Fed Set to Raise Rates by 0.75 Point and Debate Size of Future Hikes Further Listening: -The Fed’s Plan to Curb Inflation -Can the Fed Lower Inflation Without Causing a Recession? -The Fed’s Shifting Inflation Message NickTimiraos mm.. NickTimiraos erylmaz_filiz
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