Federal Reserve Boosts Rates by Half-Point, the Most Since 2000

Contact Your Elected Officials
The Epoch Times Header

Additional 50-basis-point increases are ‘on the table’ at the Fed’s next meetings, Powell says

The Federal Reserve raised interest rates by the most since 2000 on May 4 as part of efforts to fight 40-year-high inflation.

Officials serving on the Federal Open Market Committee (FOMC) agreed to increase the benchmark fed funds rate by 50 basis points, bringing it to a target range of 0.75 percent to 1 percent. The central bank’s decision was in line with market expectations.

“There is a broad sense on the committee that additional 50 basis points increases should be on the table at the next couple of meetings,” Fed Chairman Jerome Powell announced at a post-meeting press conference.

The Fed also will begin trimming its nearly $9 trillion balance sheet, confirming that it will start selling $47.5 billion in assets per month. After three months, the central bank would increase asset reductions to $95 billion per month, a measure that might reduce liquidity from money markets for several years.

In a FOMC statement, the Fed acknowledged that it is concerned about elevated broad-based inflation pressures.

“Although overall economic activity edged down in the first quarter, household spending and business fixed investment remained strong. Job gains have been robust in recent months, and the unemployment rate has declined substantially. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures,” the FOMC said.

“The invasion of Ukraine by Russia is causing tremendous human and economic hardship. The implications for the U.S. economy are highly uncertain. The invasion and related events are creating additional upward pressure on inflation and are likely to weigh on economic activity. In addition, COVID-related lockdowns in China are likely to exacerbate supply chain disruptions. The Committee is highly attentive to inflation risks.”

The Fed’s decisions influence borrowing costs, which is why interest rates are very important. When rates are higher, it might discourage more consumers from taking out a mortgage or applying for an automobile loan.

By Andrew Moran

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Doxed Democrats Are Getting Fired Left and Left

Not a misprint because a title of “left and...

Hold Up, Feds, Without Federalism, There Is No USA

Federalism is essential to governing the U.S., yet the federal government is undermining it by bribing states to implement unnecessary federal programs.

A Widow Inspires The World

Erika Kirk moved the nation with her speech two days after her husband’s assassination, vowing to continue his mission and grow Turning Point USA.

Both Left and Right Are Making Lists

The right admired Charlie Kirk for his faith and patriotism, while the left opposed him for dismantling their positions and narratives with ease.

Redemption’s playbook: The Senior

The Senior isn’t your usual underdog tale, it’s real, it’s raw, and it flips every cliché on its head with a playbook full of grit and plenty of aftermaths.

FBI Looking Into Other Possible Charlie Kirk Assassination Accomplices: Deputy Director Bongino

FBI Deputy Dir. Dan Bongino said that the FBI is “looking into” other possible accomplices in the assassination of conservative influencer Charlie Kirk.

Actor Sean Astin, Known for ‘Rudy,’ ‘Lord of the Rings,’ Elected SAG-AFTRA President

Oscar-nominated actor Sean Astin, famed for Samwise in “Lord of the Rings,” has been elected as the new president of SAG-AFTRA.

RFK Jr. Names New Members to CDC Vaccine Advisory Panel

Health Secretary Robert F. Kennedy Jr. named 5 new members to the Advisory Committee on Immunization Practices, which advises the CDC on vaccines.

Kash Patel Confirms DNA Evidence Match in Kirk Assassination, Reveals Details of Note

DNA evidence matching that of Charlie Kirk’s suspected killer was found at the crime scene, FBI Director Kash Patel said on Sept. 15.

Trump Signs Memo Targeting Direct-to-Consumer Pharmaceutical Advertising

President Trump signed a memo to ensure drug ads give fair, balanced, and complete information to protect and inform American consumers.

Trump Runs out of Patience With China, Sharpens His Words

President Donald Trump’s recent remarks targeting China and its allies mark a noticeable shift in tone.

Trump Signs Order Renaming Department of Defense as Department of War

President Donald Trump on Sept. 5 signed an executive order renaming the Department of Defense as the Department of War.

Trump Signs Executive Order Targeting Countries That Unlawfully Detain Americans

President Trump signed an EO on targeting the unlawful detention of American citizens around the world and to facilitate the release of hostages.
spot_img

Related Articles

Popular Categories

MAGA Business Central