Short-term rate now 1.75%, could still increase.
On Wednesday, the Federal Reserve announced that it will be addressing inflation by raising its interest rate from 1% to 1.75%. This is the largest rate increase since 1994. The Federal Reserve Board met earlier this week and agreed that the current inflation was escalating more quickly than expected. “We thought strong action was warranted at this meeting,” Chair Jerome Powell said, “and we delivered that.”
The current rate of inflation in the United States is at a 40-year high of 8.6%, and the central bank’s goal is to do what it takes to lower inflation to 2%. The Fed’s next meeting is in late July, where the chairman said it is possible they will raise the interest rate even more if it is deemed necessary.
As the Lord Leads, Pray with Us…
- For wisdom for members of the Federal Reserve as they address inflation with interest rate increases.
- For Reserve Chair Powell to seek the Lord as he heads the board.
- For U.S. governing officials as they continue to appropriate funds and take action that impacts the economy.
Sources: Market Watch, CNBC, Newsmax
