In a move watch closely by the White House, the Federal Reserve raised interest rates again Wednesday by .75 percentage points in its latest fight against inflation, despite growing concerns that the central bank is slowing the economy so aggressively that households and businesses will soon feel the pain.
The Post’s Rachel Siegel reports that the rate increase, announced at the end of the Fed’s two-day policy meeting, was the fifth of the year and the third consecutive three-quarter point hike.
President Biden has supported the Fed’s efforts to calm inflation, and he recently said he doesn’t think raising interest rates will cause a recession.
“We hope we can have what they [call] a soft landing — a transition to a place where we don’t lose the gains that I ran to make in the first place for middle-class folks,” Biden told CBS News’ Scott Pelley for a segment that aired Sunday on “60 Minutes.”
The White House did not immediately comment on Wednesday’s move by the Fed, which was expected.
Per Rachel:
The Post’s Rachel Siegel reports that the rate increase, announced at the end of the Fed’s two-day policy meeting, was the fifth of the year and the third consecutive three-quarter point hike.
President Biden has supported the Fed’s efforts to calm inflation, and he recently said he doesn’t think raising interest rates will cause a recession.
“We hope we can have what they [call] a soft landing — a transition to a place where we don’t lose the gains that I ran to make in the first place for middle-class folks,” Biden told CBS News’ Scott Pelley for a segment that aired Sunday on “60 Minutes.”
The White House did not immediately comment on Wednesday’s move by the Fed, which was expected.
Per Rachel:
You can read more from Rachel and other Post reporters on a live update file devoted to the Fed action here.So far, the job market and consumer spending — two crucial economic engines — have stayed resilient through the Fed’s sharp rate hikes, and Americans may even be feeling better about inflation.
But interest rate increases operate with a lag, and before too long, the full weight of what the bank has already done may become clear. The markets have grown increasingly anxious about a recession, and stocks have tumbled in recent weeks on investor anxiety that the Fed won’t ease up on its policies anytime soon.