Interest rate goes up to highest level in 14 years as Fed attempts to slow inflation
The
The higher interest rates make borrowing for items such as homes and cars more expensive.
The Fed Board voted unanimously to raise interest rates.
"Recent indicators point to modest growth in spending and production," the Fed said. "Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.
The risk of raising interest rates, experts say, is that it could cause the
The effective federal interest rate is now over 3% for the first time since
From 2009 through the middle of 2017, interest rates remained below 1% before reaching a peak of around 2.42% in 2019.
In response to the pandemic, the Fed lowered rates nearly to 0 until early this year. But with the highest inflation in over four decades, the Fed has responded with a rapid succession of rate hikes.
Report a typo
2nd Circuit rejects NRA claims against ex-NY finance superintendent
Inflation continues to outpace wage growth
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News