The Federal Reserve raised interest rates for the 11th time in 16 months on Wednesday, as policymakers grapple with what more they need to do to snuff out inflation — and whether they might slow the economy too much.
Central bankers have been resolute in their fight to tame high prices, making clear they won’t let up prematurely. That has led the Fed to hike its benchmark policy rate more than 5 percentage points since March 2022, a historic pace designed tofor all kinds of goods and services, including mortgage rates, auto loans and business hiring. Borrowing costs are now at their highest level in 22 years.
The 0.25 percentage point hike Wednesday, which was widely expected at the conclusion of the Fed’s two-day policy meeting, brings the federal funds rate to between 5.25 and 5.5 percent.“Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring and inflation,” according to a Fed statement. “The extent of these effects remains uncertain. The committee remains highly attentive to inflation risks.
An interest rate hike will affect anyone with a home mortgage, car loan, savings account or money in the stock market. The choice will hinge on a range of factors that make the economy difficult to read in real time. Rate hikes work with a lag, and it’s unclear when the full scope of the Fed’s policies will hit. Experts
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Federal Reserve Hikes Fed Funds Rate by 25 Basis PointsAs expected, the Fed hiked its benchmark fed funds rate by 25 basis points on Wednesday. The price of bitcoin remains at $29.3K following the news and awaits Jay Powell's post-meeting press conference. $BTC LedesmaLyllah reports
Baca lebih lajut »
Federal Reserve like to raise interest rates to highest level in 22 yearsThere are three possibilities for what the Fed might do moving forward, according to economists.
Baca lebih lajut »
Federal Reserve like to raise interest rates to highest level in 22 yearsThere are three possibilities for what the Fed might do moving forward, according to economists.
Baca lebih lajut »
Federal Reserve likely to raise interest rates to highest level in 22 yearsThere are three possibilities for what the Fed might do moving forward, according to economists.
Baca lebih lajut »
Interest Rates: Will the Federal Reserve pause, hike, then pause again?Inflation cooled considerably from last June through June this year. But the Fed might raise rates in July to keep driving inflation down further.
Baca lebih lajut »