NEWS ALERT: Fed makes history with another big rate hike in bid to curb inflation

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As the most reliable and balanced news aggregation service on the internet, DML News App offers the following information published by FOXBUSINESS.COM:

The Federal Reserve on Wednesday raised its benchmark interest rate by 75 basis points for the second straight month as it tries to bring scorching-hot inflation under control, a move that threatens to slow U.S. economic growth and exacerbate financial pressure on Americans.

The three-quarter percentage point hikes in June and July – the first since 1994 – underscore just how serious Fed officials are about tackling the inflation crisis after a string of alarming economic reports.

The article goes on to state the following:

The widely expected move puts the key benchmark federal funds rate at a range between 2.25% to 2.50%, the highest since the pandemic began two years ago. It marks the fourth consecutive rate increase this year; investors will be closely watching Fed Chairman Jerome Powell’s press conference after the decision for signs of how long the rapid pace of rate hikes will continue.


Fed officials said in a statement, “Recent indicators of spending and production have softened. Nonetheless, job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.”

They wrote, “Russia’s war against Ukraine is causing tremendous human and economic hardship. The war and related events are creating additional upward pressure on inflation and are weighing on global economic activity.”

CNBC tweeted Wednesday, “Here’s what you need to know about the Fed’s latest rate hike.”

The Recount tweeted, “The Federal Reserve is once again raising interest rates by 75 basis points — or 0.75% — in an effort to combat inflation. It’s the largest back-to-back interest rate hike in the Fed’s history.”

Yahoo Finance tweeted, “’I think the 75 basis point [rate hike] was fully expected by the market,’ Principal Global Investors Chief Strategist Seema Shah says, adding: ‘This is turning out to be one of the steepest hiking cycles that we have seen in recent Fed history.'”

Founder of Northman Trader Sven Henrich tweeted, “With today’s 75bp rate hike the Fed has raised rates to the level it got to in 2018 before caving. $9 trillion in debt has been added since.”

Journalist Tom Elliott wrote, “If the Fed were serious about stemming inflation, it’d raise interest rates above the CPI — around 20 percent. Instead Powell cowardly and idiotically inching rates up 50 basis points every few months (we’re still not even at 2%!), prolongs the recession w/o stopping inflation.”

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4 COMMENTS

  1. David, I agree the base rate should be 5% , but the banks need to start paying real interest to the depositors, whose money they fractionate and loan. It should also be illegal to charge 29.99% interest on Credit Cards since those rates were developed when we have 18% interest rates on mortgages back in the 80s. Fortunate for me I haven’t had any debts for the last 20 years, but what our banks are doing is usery. For too long the Banks and the Fed Reserve they own have abused the citizens relying them to bail Banks out when they make poor decisions.

  2. They knew we had this problem yet they gave away 60Billion. Took away our ability to use our own oil. Leave the border wide open to further our debt as we the tax payers will be paying the millions of illegals medical housing and food bills. Shall I go on. We will be in a depression soon and be attacked on our own soil like 9-11!

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