Hopes raised the Fed is finally beginning to tame prices
by Zachary Halaschak, Economics Reporter |
December 14, 2022 07:00 AM
The drop in inflation in November is a sign that the Federal Reserve is beginning to see success in its efforts to end the inflationary plague that has undercut families' economic security and dragged down President Joe Biden's approval ratings.
Inflation, as gauged by the consumer price index, slowed to a 7.1% annual rate in November, the Bureau of Labor Statistics reported Tuesday, a fairly steep drop of 0.6 percentage points from the month before.
The news came a day before the Fed’s monetary policy committee announces its plans for its interest rate target. The central bank has been hiking rates for nearly the entire year and has become increasingly aggressive with its increases, but now most Fed watchers expect a milder hike on Wednesday.
The central bank has carried out four straight hikes of three-quarters of a percentage point, or 75 basis points.
Most investors are expecting a smaller 50-basis-point hike following this week’s meeting.
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https://www.washingtonexaminer.com/policy/economy/inflation-report-hope-fed-taming-prices-november
