JULY 28, 2022:
WASHINGTON (AP) — Jerome Powell delivered a tough message at the start of a news conference Wednesday (July 27, 2022): Inflation is way too high, and the Federal Reserve is laser-focused on taming it with higher borrowing costs. Yet despite his resolute words, the Fed chair said he saw early signs that progress was being achieved, however slight, in the fight against the worst inflation the nation has endured in four decades. With the Fed’s benchmark interest rate now at a level that’s believed to neither stimulate nor restrain growth, Powell suggested that the pace of rate hikes could slow in the coming months.
JULY 27, 2022:
WASHINGTON (AP) — The Federal Reserve raised its benchmark interest rate by a hefty three-quarters of a point for a second straight time in its most aggressive drive in three decades to tame high inflation. The Fed’s move will raise its key rate, which affects many consumer and business loans, to its highest level since 2018. The central bank’s decision follows a jump in inflation to 9.1%, the fastest annual rate in 41 years. By raising borrowing rates, the Fed makes it costlier to take out a mortgage or an auto or business loan. Consumers and businesses then presumably borrow and spend less, cooling the economy and slowing inflation.
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