Economía

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Fed attacks inflation with another big rate hike

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Fed attacks inflation with another big rate hike

WASHINGTON (AP) — Intensifying its fight against high inflation, the Federal Reserve raised its key interest rate Wednesday by a substantial three-quarters of a point for a third straight time and signalled more large rate hikes to come — an aggressive pace that will heighten the risk of an eventual recession

WASHINGTON (AP) — Intensifying its fight against high inflation, the Federal Reserve raised its key interest rate Wednesday by a substantial three-quarters of a point for a third straight time and signalled more large rate hikes to come — an aggressive pace that will heighten the risk of an eventual recession.

The Fed‘s move boosted its benchmark short-term rate, which affects many consumer and business loans, to a range of 3% to 3.25%, the highest level since early 2008.

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The officials also forecast that they will further raise their benchmark rate to roughly 4.4% by year’s end, a full point higher than they had envisioned as recently as June.

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And they expect to raise the rate again next year, to about 4.6%. That would be the highest level since 2007

By raising borrowing rates, the Fed makes it costlier to take out a mortgage or an auto or business loan

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