The Federal Reserve instituted a dramatic interest rate hike on Wednesday, the latest in a series of borrowing cost increases, as the central bank tries to dial back near-historic inflation while avoiding an economic downturn.
The Federal Reserve is expected to either raise its key short-term rate by three-quarters of a point for the third time in a row, to 3% or hike it by one full percentage point to three-and-a-quarter percent
The 30-year fixed-rate mortgage now averages around 5.9% percent, up about .02% from the week before.
“I guess the first thing I would say to every household is that we know inflation is too high and we understand how painful it is. Particularly for people who are living paycheck to paycheck and spend most of that paycheck on necessities such as food and gas and heating their homes and clothing and things like that. We do understand that those people suffer the most,” said Chair of the Federal Reserve, Jerome Powell.
The stock market is taking another steep dive after the Federal Reserve raised interest rates to fight inflation, but what products are taking the biggest hit?
The Federal Reserve raised interest rates, with the biggest hike in nearly three decades, in order to help fight inflation. The move also triggers fears about the possible side effects, an economic slowdown or even a recession.
The Federal Reserve aggressively raises interest rates again, the third time they’ve done that this year. The move is an attempt to bring down record-high inflation, but it’s expected to have an immediate impact on how much Americans will have to pay to borrow money. It is already sparking fears of a possible recession.
The Federal Reserve on Wednesday intensified its drive to tame high inflation by raising its key interest rate by three-quarters of a point — its largest hike in nearly three decades — and signaling more large rate increases to come that would raise the risk of another recession.
Consumer News: Economic concerns mount with experts predicting another interest rate hike
Americans are facing a triple threat to their finances, as U.S. stocks have dipped into a bear market. The Federal Reserve is expected to increase interest rates Wednesday, and, some economists say a recession is likely.
