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What comes next for the Federal Reserve in its fight to tame inflation?
US ‘not in strong economy,’ contrary to what Fed’s Powell argues: Wealth advisor
Eddie Ghabour, the co-founder of Key Advisors Group LLC, argues the middle class is going to get ‘really squeezed’ by the current inflationary environment.
The Federal Reserve ramped up its inflation fight on Wednesday with the biggest interest rate increase in two decades and signaled that additional aggressive moves are likely in the coming months.
In remarks after the Federal Open Market Committee voted to raise its key interest rate by 50 basis points for the first time since 2000, Fed Chairman Jerome Powell told reporters that similarly sized hikes are on the table at future meetings.
HOW THE FEDERAL RESERVE MISSED THE MARK ON SURGING INFLATION
"Inflation is much too high, and we understand the hardship it is causing, and we are moving expeditiously to bring it back down," Powell said. "Assuming that economic and financial conditions evolve in line with expectations, there is a broad sense on the committee that additional 50 basis point increases should be on the table at the next couple of meetings."
His comments came after policymakers voted unanimously to raise the key benchmark rate by a half point to a range between 0.75% and 1.0% — the highest since the pandemic began two years ago — as they look to curb consumer demand in order to reduce soaring prices.