The result will be tighter credit options for households.
At its meeting on Wednesday, the Federal Reserve raised interest rates to a target range of 4.75% to 5%, the highest it has been since 2007.
The Federal Reserve stated, “Recent developments are likely to result in tighter credit conditions for household and business… the extent of this effect is uncertain.”
The continuing purpose of interest rate increases is bringing down inflation to the Fed’s target zone of 2%. It is presently 5.4%.
As recently as two weeks ago, the Chairman of the Federal Reserve, Jerome Powell, had raised the potential of an extra-large half-point rate increase this year.
As the Lord Leads, Pray with Us…
- For Chairman Powell and members of the Federal Reserve as they endeavor to rein in inflation.
- For the president and his administration as they assess their economic policies.
- For Americans who are over-extended between inflation and interest rates and struggling to make ends meet.
Sources: Wall Street Journal, Axios
