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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsFed officials signal rates may head to 'restrictive' levels
WASHINGTON (AP) Federal Reserve officials agreed when they met earlier this month that they may have to raise interest rates to levels that would weaken the economy as part of their drive to curb inflation, which is near a four-decade high.
At the same time, many of the policymakers also agreed that after a rapid series of rate increases in the coming months, they could assess the effects of their rate hikes and, depending on the economys health, increase rates at a slower pace.
After their meeting this month, the policymakers raised their benchmark short-term rate by a half-point double the usual hike. According to minutes from the May 3-4 meeting released Wednesday, most of the officials agreed that half-point hikes also would likely be appropriate when they next meet in June and July. Chair Jerome Powell himself had indicated after this month's meeting that half-point increases would be on the table at the next two meetings.
All the officials believed that the Fed should expeditiously raise its key rate to a level at which it neither stimulates nor restrains growth, which officials have said is a rate of about 2.4%. Some policymakers have said they will likely reach that point by the end of this year.
https://www.msn.com/en-us/money/markets/fed-officials-signal-rates-may-head-to-restrictive-levels/ar-AAXIp8u
House of Roberts
(5,188 posts)so those with deep pockets can purchase distressed assets for pennies on the dollar yet again.
The side bonus is they get to make Biden look weak, as the jobs disappear, and the prices remain high.
durablend
(7,465 posts)As well as kicking more people out of their homes and raising prices to make up for the higher interest rates.
Good times!!!
WarGamer
(12,485 posts)When I was shipping pkg frequently around 10 years ago...
11lb coast to coast was around 12-15$
Fiendish Thingy
(15,680 posts)I dont think theres a way to cool inflation and stabilize the economy without at least a short recession. If the fed is aggressive this summer, inflation might settle by the fall, even if a recession might last until early 2023.