Fed announces first interest rate hike in years as inflation looms large
(Worthy News) – The Federal Reserve announced Wednesday it would raise its interest rate target by a quarter percentage point in an effort to curb soaring inflation, a major step away from its pandemic-era emergency policies.
Fed officials, as a group, also indicated that they expect seven or eight rate hikes over the course of 2022 — a much higher number than the three that were projected during the last quarter. One unnamed participant is pushing for up to a dozen rate hikes, according to Wednesday’s release. The urgency in raising rates is a reaction to the high rate of inflation, which officials now see running significantly higher over the course of 2022.
The Fed announced the move, which was thought by many economists to be overdue, after a much-anticipated two-day meeting of the Federal Open Market Committee. Inflation has been running much hotter than many had expected, with consumer prices reaching a breakneck 7.9% for the 12 months ending in February. [ Source (Read More…) ]