{"id":1983960,"date":"2023-07-27T10:01:02","date_gmt":"2023-07-27T14:01:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-hikes-interest-rates-to-22-year-high\/"},"modified":"2023-07-27T11:48:12","modified_gmt":"2023-07-27T15:48:12","slug":"fed-hikes-interest-rates-to-22-year-high","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-hikes-interest-rates-to-22-year-high\/","title":{"rendered":"Fed raises interest rates to highest level in 22 years."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffed-hikes-interest-rates-to-22-year-high%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1983960&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div>\n<h2>The Federal Reserve \u200bRaises Interest Rates<\/h2>\n<p>The\u2063 Federal Reserve made a significant move on Wednesday, <a title=\"Federal Reserve Delivers Bad News About Expectations For Inflation, Raising Interest Rates: Report\" href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-delivers-bad-news-about-expectations-for-inflation-raising-interest-rates-report\/\">raising interest rates<\/a> by a quarter of a percentage point. Fed Chair Jerome\u2064 Powell emphasized the need\u2062 for \u2064the economy to slow down and the labor market\u200b to weaken in order for inflation to return to the central bank&#8217;s target of 2 percent.<\/p>\n<p>This latest hike marks the 11th increase in the last 12 meetings,\u200d setting \u200dthe <a title=\"Unemployment Rate Rises for First Time in a Year\" href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/unemployment-rate-rises-for-first-time-in-a-year\/\">benchmark overnight interest rate<\/a> in the\u2062 range \u200cof \u200c5.25 percent to \u20645.50 percent. This level has not been consistently exceeded for about 22 years, dating back to just before the 2007 housing market crash.<\/p>\n<blockquote><p>&#8220;The (Federal Open Market) Committee will continue to assess additional information and its implications \u2062for monetary policy,&#8221; the Fed stated, leaving its policy options open\u200d as it searches for a stopping point in the\u2062 current\u200c tightening cycle.<\/p><\/blockquote>\n<p>Powell\u200d did not make any promises regarding future rate \u200cincreases,\u200c but the September meeting is considered &#8220;live&#8221; for another hike. However, if inflation continues to slow and economic data weakens, policymakers may choose to pause.<\/p>\n<h3>Challenges in the Inflation Fight<\/h3>\n<p>In a press conference following the policy move, Powell emphasized the importance of analyzing incoming data to determine if the economy is heading for\u200d a period of &#8220;below-trend&#8221; growth. This type of growth is\u2063 necessary for inflation to decrease.<\/p>\n<p>While inflation has been easing, key price measures are still increasing at more than double the Fed&#8217;s target. However, the labor market\u200b remains strong, with the unemployment rate at \u2062a low 3.6 percent. Economic growth has also remained above the Fed&#8217;s estimated trend rate.<\/p>\n<p>Powell acknowledged the positive \u2064development of inflation falling without significant damage \u200dto the economy. However, he stated that achieving the inflation target will likely require some \u2063economic losses.<\/p>\n<blockquote><p>&#8220;Reducing inflation is likely to require a period of below-trend growth and some softening \u200bof labor market conditions,&#8221; Powell\u2064 explained.<\/p><\/blockquote>\n<p>The Fed \u200cwill continue to monitor incoming\u200b data and assess the impact of rate \u200dhikes on the economy to determine the extent of additional policy firming needed to reach its inflation target.<\/p>\n<p>While inflation data has been weaker than expected since the June meeting, policymakers have \u200bbeen hesitant to alter their hawkish approach until there is more progress in reducing price pressures. \u200cMost policymakers anticipate \u2062at least one more rate \u200dincrease by the end \u2063of the year.<\/p>\n<p>Powell emphasized that decisions will be made on a \u200dmeeting-by-meeting basis,\u2062 and officials can only provide limited guidance about \u200bfuture monetary policy.<\/p>\n<p>He \u200bcautioned against expecting \u2063any near-term easing in rates, stating that\u200d cutting rates won&#8217;t happen this year.<\/p>\n<h3>&#8220;Moderate&#8221; Growth and Future Outlook<\/h3>\n<p>The Fed&#8217;s statement acknowledged the economy&#8217;s continued outperformance, with robust job gains and moderate growth. Powell expressed hope\u200b for a &#8220;soft landing&#8221; scenario, where inflation falls, unemployment remains low, and a recession\u2062 is avoided.<\/p>\n<p>However, his comments about the need for slower growth suggest a possible bias towards higher rates to put more\u200c pressure on demand. Some analysts believe that a \u200crecession or deeper slowing may be necessary to bring inflation back to the target.<\/p>\n<p>Overall, the Federal Reserve&#8217;s decision to <a title=\"Fed raises interest rates to highest level in 22 years.\" href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-hikes-interest-rates-to-22-year-high\/\">raise \u2062interest rates reflects<\/a> its ongoing\u2064 efforts to manage inflation and maintain a strong economy.<\/p>\n<p>(Reporting by \u2064Howard\u200b Schneider and Michael S. Derby; Additional reporting\u200c by Safiyah Riddle; Editing by Paul Simao)<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve increased interest rates by 0.25% on Wednesday. Fed Chair Jerome Powell stated that the economy must slow down and the labor market weaken for inflation to reach the central bank&#8217;s 2% target. This marks the 11th hike in the Fed&#8217;s last 12 actions.<\/p>\n","protected":false},"author":66,"featured_media":1983961,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"Fed raises interest rates to highest level in 22 years.","footnotes":""},"categories":[544],"tags":[],"class_list":["post-1983960","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-free-beacon"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"Fed raises interest rates to highest level in 22 years.","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1983960","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1983960"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1983960\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1983961"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1983960"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1983960"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1983960"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}