This raises the Fed Funds rate to its highest since 2008
The current Fed Funds Rate is 3.75%-4%
Initial comments were dovish but turned hawkish during the press conference
Stocks dropped harshly in the last hour of trading
The Federal Reserve on Wednesday hikes rates for the fourth consecutive three-quarter point interest rate increase in an attempt to cool down inflation. The Fed hinted toward the end of these rate hikes.
“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.”
Economists are predicting the end of the 0.75% rate hikes and are discussing a half-point increase during December's meeting.
Narrow room for soft-landing
Jay Powell is saying there is still a possibility of a soft landing. Most economists are seeing that window narrowing and are predicting that we enter an official recession within the next 6-9 months.
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