The Federal Reserve is likely to approve the third straight 75-basis-point interest rate hike on Wednesday as it further intensifies its war on inflation.
Federal Reserve Chair Jerome Powell and members of the Federal Reserve will use this week's consumer and producer price indices reports to weigh raising interest rates an additional 75 percentage points when the group meets on Sept. 21, 2022.
In a brief but direct speech at the Kansas Fed's annual economic symposium in Jackson Hole, Wyo., last month, Powell stressed that the Fed is committed to crushing inflation, regardless of the potential economic fallout that ensues from higher rates. Central bank policymakers already approved four consecutive interest rate hikes, including back-to-back 75-basis-point increases in June and July, and have shown no sign of taking their foot off the brake as inflation remains painfully high.The current benchmark federal funds range of 2.25% to 2.50% is around the "neutral" level, meaning that it neither supports nor restricts. A three-quarter percentage point increase would put the range at 3.00% to 3.