The Fed's rate increases since March 2022 have more than doubled mortgage rates, elevated the costs of auto loans, credit card borrowing and business loans and heightened the risk of a recession.
WASHINGTON — The 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.
People are also reading… Still, the Fed's statement offered little indication that its string of rate hikes have made significant progress toward its goal of cooling the economy, the job market and inflation. Inflation has fallen from a peak of 9.1% in June to 5% in March but remains well above the Fed's 2% target rate.
The banking upheaval might have played a role in the Fed’s decision Wednesday to consider a pause. Powell had said in March that a cutback in lending by banks, to shore up their finances, could act as the equivalent of a quarter-point rate hike in slowing the economy. Listen now and subscribe: Apple Podcasts | Google Podcasts | Spotify | RSS Feed | Omny Studio The Fed’s decision Wednesday came against an increasingly cloudy backdrop. The economy appears to be cooling, with consumer spending flat in February and March, indicating that many shoppers have grown cautious in the face of higher prices and borrowing costs. Manufacturing, too, is weakening.
Goldman Sachs estimates that a widespread pullback in bank lending could cut U.S. growth by 0.4 percentage point this year. That could be enough to cause a recession. In December, the Fed projected growth of just 0.5% in 2023. Consumer prices rose 7% in the 20 countries that use the euro currency in April from a year earlier, up from a 6.9% year-over-year increase in March.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Fed Statement: March vs MayMarch 22May 03, 2023 Recent indicators point to Economic activity expanded at a modest growthpace in spending and production.the first quarter. Job ga
Baca lebih lajut »
Fed playbook: Which stocks to buy or sell depending on what the Fed doesCNBC Pro screened for names screened that are the most sensitive to interest rates by looking at the 100-day correlation between each S&P 500 stock and SHY ETF.
Baca lebih lajut »
Canton man sentenced for 2022 attempted murder“We want to send a clear message that there is no room for violence of this kind in our community,' said Stark County Prosecuting Attorney Kyle L. Stone.
Baca lebih lajut »
Recapping the 2022-2023 avalanche seasonGiven all the snow Alaska saw during the season — which caused frequent unstable conditions — recreators to the backcountry have been both well prepared and lucky.
Baca lebih lajut »
Bitcoin's Market Cap Dominance Near June 2022 Highs: DataBitcoin's market capitalization dominance is surging once again, according to data from The Tie. CoinDesk senior research analyst George Kaloudis and The Tie CEO and co-founder Joshua Frank discuss as the cryptocurrency's price ended April relatively unchanged.
Baca lebih lajut »
AMC Theatres CEO Adam Aron’s Pay Jumps to $23.7M In 2022He had made $18.9 million in 2021 as the mega-exhibitor was recovering from the COVID-19 crisis and contended with changing consumer habits in the age of streaming.
Baca lebih lajut »