Investors and economists had widely anticipated the quarter-point increase despite the recent meltdown in the banking sector. Still, Federal Reserve Chair Jerome Powell and policymakers entered their second policymaking meeting of the year confronted by an unusual level of uncertainty as the landscape surrounding the financial system continues to shift.
The Fed, in its fight against inflation, has been trying to do exactly that: Slow the economy. So rate hikes may not be necessary anymore to beat back rising prices. On the other hand, the banking meltdown may not slow the economy. Powell said the Fed is watching closely. “It’s possible that these events will turn out to have very modest effects on the economy, in which case inflation will continue to be strong, in which case, you know, the path might look different,” Powell said.
1. When all you have is a hammer, all problems look like a nail. 2. There are no other “big takeaways”
Spoiler: The $1,700,000,000,000 “Inflation Reduction Act” was just another slush fund for politicians and did nothing to stop inflation.
Oh great, interest rates go up again, so now houses are worth even less. Maybe instead of printing 300bn to bail out a corrupt bank, they should focus on lowering inflation instead of directly increasing it with their terrible policy
They will end with interest rates just not until the end of the year
When does Biden's 'build back better' start?
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