Fed lifts interest rates by a quarter percentage point and signals 'ongoing increases'

The Federal Reserve on Wednesday approved a quarter-percentage-point increase in a key U.S. interest rate and signaled its not ready to back off in its fight against inflation, repeating its view that ‘ongoing increases’ will be needed.

The Fed on Wednesday lifted its benchmark short-term rate to a range of 4.5% to 4.75%. The decision followed six larger rate hikes in a row as the Fed stepped up its fight to quench the worst bout of inflation in 40 years. “The [Federal Open Market Committee] anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time,” the statement read.

In December, the bank’s interest-rate setting panel forecast that its’ benchmark rate would top out around 5% to 5.25%. That suggests at least two more rate hikes of a quarter point. To be sure, the economy has softened. Hiring has slowed for five straight months and hiring in January may have been the weakest in two years. A variety of other indicators also point to spreading weakness.

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.

Gold Price Forecast: XAU/USD fades rebound ahead of Federal Reserve Interest Rate DecisionGold price (XAU/USD) struggles to extend the previous day’s recovery beyond $1,930-28 as the market braces for the key Federal Reserve (Fed) verdict o
Source: FXStreetNews - 🏆 14. / 72 Read more »

Federal Reserve raises key interest rate 0.25%, signals more hikes likelyWhile there are some signs inflation is decelerating, officials warn that the Fed isn't likely to back off its rate hikes anytime soon. So why do they keep raising it?!!! 'As if any increase is a good thing. Increases in such interest rate had done nothing for the American people but serve as a tax. The American people to carry thus burden. As its' the American people people who will pay thus increase, since the government is not the people.'
Source: NBCNews - 🏆 10. / 86 Read more »