![]() ![]() Investors fear that, given the strong jobs report, the Fed will have no reason to temper its inflation-fighting strategy yet. That pushed the federal funds rate up to a range of 3% to 3.25%, its highest rate in 14 years. That was the third consecutive rate hike of that magnitude in since June. The Fed's most recent rate hike came in late September, when it raised the benchmark federal funds rate by 0.75 percentage points. Higher interest rates will likely lead to job losses and could eventually cause a recession. ![]() By making it more expensive to borrow money, the Fed hopes to slow economic growth, thereby cooling inflation.
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