An additional 0.75 percent marks the fourth straight increase.
The Federal Reserve raised interest rates Wednesday by 75 basis points for the fourth straight meeting while hinting at a potentially slower pace in the future as they continue to try to slow inflation.
The Fed’s action raised its key short-term rate to its highest level in 15 years. This marks the sixth rate hike this year by the central bank, which has impacted mortgages, consumer and business loans and brought the nation to the brink of recession.
The Fed stated that it may take a slower pace toward future rate increases. In the coming months, the board intends to consider the cumulative impact of its large rate hikes on the economy, noting that rate increases take time to affect growth and inflation.
For now, many Fed officials have said they see few signs that inflation is easing in any sustainable way. They referenced core inflation, which excludes volatile food and energy costs and is considered an adequate representation of underlying price pressures.
As the Lord Leads, Pray with Us…
- For Chairman Powell to seek God’s guidance as he heads the Federal Reserve.
- For board members to be led by the Lord in their decisions.
- For Americans as they deal with inflation and rising interest rates.
Sources: ABC News, Newsmax
