The Briefing Room
General Category => Economy/Business => Topic started by: mystery-ak on November 02, 2022, 06:36:25 pm
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Federal Reserve hikes interest rates by 75 basis points for fourth time this year
by Sylvan Lane - 11/02/22 2:00 PM ET
The Federal Reserve on Wednesday hiked interest rates by three-quarters of a percentage point, pressing even harder on the brakes of the economy in a scramble to slow inflation.
The Federal Open Market Committee, the panel of Fed officials responsible for monetary policy, boosted the central bank’s baseline interest rate range to a span of 3.75 to 4 percent. It is the fourth consecutive 75 basis point hike issued by the Fed and sixth interest rate increase since March.
As the Fed raises its baseline interest rate range, interest rates on mortgages, credit cards, and other loans rise as well. Higher borrowing costs tend to slow the economy as households and businesses have less money to spend on goods and services.
The Fed’s latest hike will add even more financial pressure to a resilient but slowing U.S. economy that some experts believe is on the precipice of recession.
The Fed’s rapid interest rate hikes have caused home sales to collapse and pushed businesses to pull back investment, two major forces that could slow the U.S. economy. Higher Fed interest rates also deepen economic turmoil abroad, which could boomerang on the U.S.
more
https://thehill.com/policy/3715979-federal-reserve-hikes-interest-rates-by-75-basis-points-for-fourth-time-this-year/
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... still won't help food and utility bills, which are energy supply issues - not demand issues.
Energy demand could be reduced by turning off the country's fuel and electricity supplies for a few months.
If there is no supply to be had, there is nothing to consume.
Mass starvation would help reduce demand for food.
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Last month my 401K started climbing back. I guess I can kiss that good bye. FJB.
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Last month my 401K started climbing back. I guess I can kiss that good bye. FJB.
We were seeing a bit of a bump up from what we had lost in our portfolio...now we'll see another nosedive.
FJB!!!!
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Stock market is down today.