Federal Reserve raises key rate by half-point and signals more to come

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.The Federal Reserve reinforced its inflation fight Wednesday by raising its key interest rate for the seventh time this year and signaling more hikes to come. But the Fed announced a smaller hike than it had in its past four meetings at a time when inflation is showing signs of easing.

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.

Yet with price increases still uncomfortably high - inflation was 7.1% in November compared with a year earlier - Powell and other Fed officials have underscored that they expect to keep rates at their peak for an extended period. Despite Powell's recent hard-line remarks - he said late last month that "we have not seen clear progress on slowing inflation" - he and other Fed officials have made clear that they're ready to dial down the pace of rate hikes. In doing so, they will have time to assess the impact of the increases they've already imposed. Those hikes have sent home sales plummeting and are starting to reduce rents on new apartments, a leading source of high inflation.

In remarks late last month, Powell said he was tracking price trends in three different categories to best understand the likely path of inflation: Goods, excluding volatile food and energy costs; housing, which includes rents and the cost of homeownership; and services excluding housing, such as auto insurance, pet services and education.

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.

Federal Reserve raises key rate by half-point and signals more to comeThe Federal Reserve reinforced its inflation fight by raising its key interest rate for the seventh time this year and signaling more hikes to come.
Source: 6abc - 🏆 250. / 63 Read more »

Federal Reserve raises key rate by half-point and signals more to comeThe Federal Reserve reinforced its inflation fight by raising its key interest rate for the seventh time this year and signaling more hikes to come.
Source: ABC7Chicago - 🏆 284. / 63 Read more »

Federal Reserve raises key interest rate by half-point, slowing its fight against inflationThe Federal Reserve raised its key interest rate for the seventh time this year, but announced a smaller hike than it had in its past four meetings at a time when inflation is showing signs of easing.
Source: adndotcom - 🏆 293. / 63 Read more »

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.
Source: ABC7Chicago - 🏆 284. / 63 Read more »

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.
Source: ABC7NY - 🏆 592. / 51 Read more »