Federal Reserve Chairman Jerome Powell speaks at a press conference in Washington on July 27, 2022, after the Fed decided to raise the benchmark interest rate by 0.75 percentage point for the second straight meeting. (Photo by Kyodo News/Sipa USA)
United States: Fed continues huge rate hike
WASHINGTON (AP) — The Federal Reserve pumped up its benchmark interest rate by three-quarters of a point for a fourth straight time to fight high inflation but also hinted that it could soon reduce the size of its rate hikes.
It was the central bank’s sixth rate hike this year — a streak that has made mortgages and other consumer and business loans increasingly expensive and heightened the risk of a recession. The Fed said that in coming months it would consider the cumulative impact of its large rate hikes on the economy.
It noted that rate increases take time to fully affect growth and inflation.
—Copyright 2022 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
