![]() In response, the Fed has aggressively raised interest rates to try to bring down prices. From groceries to gas, everyday essentials have gone up in cost. Since early 2022, the Federal Reserve has been working to temper rising prices and tame runaway inflation. ![]() "My colleagues and I understand the hardship that high inflation is causing, and we remain strongly committed to bringing inflation back down to our 2% goal," said Fed Chair Jerome Powell at the Federal Open Market Committee meeting press conference. However, with another bank failure in the news - the recent collapse of First Republic Bank - and inflation still not at the 2% target, the Fed's decision to raise rates incrementally is unsurprising. With inflation slowing and jobless claims still below historical averages, some experts expected the Fed to pause its rate hikes this month. "It has been more than a decade since we have seen rates this high." "The rate increase is a signal that the fight against inflation is far from over, despite signs that things are heading in the right direction," said Bruce McClary, senior vice president for communications at the National Foundation for Credit Counseling. ![]() It's clear that while inflation is improving, the Fed's job isn't done. The Federal Reserve issued its 10th consecutive rate hike since March 2022, pushing the federal funds rate to a target range between 5% and 5.25%, the highest level since 2007.
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