Federal Reserve Announces Quarter-Point Interest Rate Hike
The Federal Reserve announced another interest rate hike on Wednesday as it continues its efforts to curb inflation.
Details: The latest increase to the federal interest rate is the eight hike since March 2022. This increase was milder compared to previous hikes, with the rate only going up a quarter-point.
What Does This Mean? An article published in SoFi Learn describes the federal interest rate as the “rate at which banks charge each other for loans borrowed or lent overnight.” When the federal interest rate is high, credit and loans are more expensive, resulting in less economic growth. The Federal Reserve is operating under the thought that inflation can be lowered by slowing down economic activity, so by raising the interest rate, they are intentionally reducing economic activity in an effort to bring down prices.
Key Quotes: Commenting on economic data indicating inflation was decreasing, Federal Reserve Chair Jerome Powell told reporters, “we will need substantially more evidence to be confident that inflation is on a long, sustained downward path. It would be very premature to declare victory or think that we really got this. We have to complete the job.”
How The Media Covered It: Fox News stated that a “growing number of Wall Street economists anticipate the Fed's actions will tip the economy into a recession next year.” The Associated Press report echoed this, stating that the rate hike “will likely further raise the costs of many consumer and business loans and the risk of a recession.”
Featured Coverage of this Story
From the RightFed raises interest rates by a quarter point but signals inflation fight's not over
The Federal Reserve on Wednesday raised its benchmark interest rate by a quarter of a point, further slowing its aggressive campaign to cool the economy amid growing evidence that stubbornly high inflation is finally starting to ease.
The widely expected move puts the key benchmark federal funds rate at a range of 4.5% to 4.75%, the highest since 2007, from near zero in March 2022. It marks the eighth consecutive rate increase, following a half-point hike in December and four jumbo-sized 75-basis-point hikes before that.
Fed officials are in the...
From the LeftFed lifts rate by quarter-point and signals more hikes ahead
The Federal Reserve extended its fight against high inflation Wednesday by raising its key interest rate by a quarter-point, its eighth hike since March. And the Fed signaled that even though inflation is easing, it remains high enough to require further rate hikes.
At the same time, Chair Jerome Powell said at a news conference that the Fed recognizes that the pace of inflation has eased — a signal that it could be nearing the end of its rate hikes. The stock and bond markets rallied during his news conference,...
From the CenterFed Approves Quarter-Point Rate Hike, Signals More Increases Likely
The Federal Reserve approved a quarter-percentage-point interest-rate increase and signaled plans to raise rates again next month to continue lowering inflation.
The decision Wednesday followed six consecutive larger rate rises, including an increase of a half point in December and 0.75 point in November.
Officials nodded to recent improvement in inflation readings but didn’t significantly alter their guidance around coming rate moves in a policy statement released after the meeting.
“The committee anticipates that ongoing increases” in interest rates “will be appropriate in order to attain a stance of monetary...
March 28th, 2023
March 28th, 2023
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