Loan Digest

U.S. Fed raises key rate but hints it may pause amid bank turmoil

  • 📰 CTVNews
  • ⏱ Reading Time:
  • 33 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 99%

Loans Loans Headlines News

Loans Loans Latest News,Loans Loans Headlines

The U.S. Federal Reserve reinforced its fight against high inflation Wednesday by raising its key interest rate by a quarter-point to the highest level in 16 years. But the Fed also signalled that it may now pause its streak of 10 rate hikes, which have made borrowing for consumers and businesses steadily more expensive.

In a statement after its latest policy meeting, the Fed removed a sentence from its previous statement that had said "some additional" rate hikes might be needed. It replaced it with language that said it will now weigh a range of factors in "determining the extent" to which future hikes might be needed.Speaking at a news conference, Chair Jerome Powell said the Fed has yet to decide whether to suspend its rate hikes.

James Knightley, chief international economist at ING, suggested that "with lending conditions rapidly tightening in the wake of recent bank stresses, we think this will mark the peak for interest rates." "Inflation pressures continue to run high, and the process of getting getting inflation back down to 2% has a long way to go," Powell said.

The Fed is now also grappling with a standoff around the nation's borrowing limit, which caps how much debt the government can issue. Congressional Republicans are demanding steep spending cuts as the price of agreeing to lift the nation's borrowing cap.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 1. in LOANS

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.

U.S. Federal Reserve raises key rate but hints it may pause amid bank turmoil - BNN BloombergThe Federal Reserve reinforced its fight against high inflation Wednesday by raising its key interest rate by a quarter-point to the highest level in 16 years. But the Fed also signaled that it may now pause the streak of 10 rate hikes that have made borrowing for consumers and businesses steadily more expensive.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Fed hikes interest rate by quarter point: Read the official statementFederal Reserve hiked its rate by 25 basis points. Read the Fed\u0027s official statement
Source: financialpost - 🏆 7. / 85 Read more »

Fed hikes interest rate by quarter point: Read the official statementFederal Reserve hiked its rate by 25 basis points. Read the Fed\u0027s official statement
Source: fpinvesting - 🏆 43. / 63 Read more »

Fed raises interest rates, flags possible pauseThe Federal Reserve on Wednesday raised interest rates by a quarter of a percentage point and signalled it may pause further hikes. Read on.
Source: nationalpost - 🏆 10. / 80 Read more »

Fed raises interest rates, flags possible pauseThe Federal Reserve on Wednesday raised interest rates by a quarter of a percentage point and signalled it may pause further hikes. Read on.
Source: financialpost - 🏆 7. / 85 Read more »