The Marriner S. Eccles Federal Reserve building in Washington last August.
Photo:
Graeme Sloan/Bloomberg News
WASHINGTON—The Federal Reserve lifted interest rates by 0.75 percentage point to combat inflation and signaled plans to keep raising them, though possibly in smaller increments.
Fed officials in a Wednesday policy statement acknowledged it could take time for rapid increases this year to be reflected in the economy. “The committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments,” said the statement released at the conclusion of a two-day meeting.
SHARE YOUR THOUGHTS
Do you think the Fed should slow down rate increases? Why or why not? Join the conversation below.
The statement said continued rate rises were needed “to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time.”
Officials are boosting interest rates at the fastest pace since the early 1980s to reduce inflation that is running near a 40-year high. They have raised rates by 0.75 point at four consecutive meetings, with the latest one taking the central bank’s benchmark federal-funds to a range between 3.75% and 4%.
Wall Street analysts are focused on what Fed Chairman
Jerome Powell
says at a news conference at 2:30 pm Eastern time about any deliberations to slow the pace of interest-rate rises at their next meeting in December.
Write to Nick Timiraos at nick.timiraos@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
The Marriner S. Eccles Federal Reserve building in Washington last August.
Photo:
Graeme Sloan/Bloomberg News
WASHINGTON—The Federal Reserve lifted interest rates by 0.75 percentage point to combat inflation and signaled plans to keep raising them, though possibly in smaller increments.
Fed officials in a Wednesday policy statement acknowledged it could take time for rapid increases this year to be reflected in the economy. “The committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments,” said the statement released at the conclusion of a two-day meeting.
SHARE YOUR THOUGHTS
Do you think the Fed should slow down rate increases? Why or why not? Join the conversation below.
The statement said continued rate rises were needed “to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time.”
Officials are boosting interest rates at the fastest pace since the early 1980s to reduce inflation that is running near a 40-year high. They have raised rates by 0.75 point at four consecutive meetings, with the latest one taking the central bank’s benchmark federal-funds to a range between 3.75% and 4%.
Wall Street analysts are focused on what Fed Chairman
Jerome Powell
says at a news conference at 2:30 pm Eastern time about any deliberations to slow the pace of interest-rate rises at their next meeting in December.
Write to Nick Timiraos at nick.timiraos@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8