Half a percent hike is the seventh this year.
On Wednesday, the Federal Reserve again increased interest rates, by half a percentage point instead of the three-quarter percentage points they had been utilizing during the summer.
Federal Reserve Chairman Jerome Powell said, “We are seeing the effects on demand in the most interest-sensitive sectors of the economy such as housing. It will take time, however, for the full effects of monetary restraint to be realized, especially on inflation. We still have some ways to go.”
He added, “We may have to raise rates higher to go where we want to go. That’s why we’re running down the high rates and why we’re expecting they’ll have to remain high for a time.”
Though inflation dropped slightly in November to 7.1, the Federal Reserve’s target rate is 2 percent. “Reducing inflation is likely to require a sustained period of below-trend growth and some softening of labor market conditions,” Chairman Powell said. “We’ll stay the course until the job is done.”.
As the Lord Leads, Pray with Us…
- For prudence for Chairman Powell as he heads the Federal Reserve.
- For the board members to be discerning as they evaluate the economy and interest rates.
- For administration officials as they address inflation and implement the president’s agenda.
Sources: CBS News, The Hill
