Posted on 11/02/22
| News Source: FOX Business
The Federal Reserve on Wednesday raised its benchmark interest rate by 75 basis points for the fourth straight month as it struggles to bring runaway inflation under control, a move that threatens to further slow U.S. economic growth and exacerbate financial pain for millions of households and businesses.
The three-quarter percentage point hikes in June, July, September and November — the most aggressive series of increases since 1994 — underscore just how serious Fed officials are about tackling the inflation crisis after a string of alarming economic reports. Policymakers voted unanimously to approve the latest super-sized hike.
The widely expected move puts the key benchmark federal funds rate at a range of 3.75% to 4%, the highest since before the 2008 financial crisis. It marks the sixth consecutive rate increase this year.
However, the Fed also hinted at the possibility of smaller rate increases at future meetings as policymakers acknowledged that tighter monetary policy takes time to work its way through the economy.