The Federal Reserve is expected to raise interest rates again Wednesday, this time by half a percentage point, in an aggressive step toward combating the highest inflation in 40 years.
“Our goal is to use our tools to get demand and supply back in sync so that inflation moves down,” Fed Chair Jerome H. Powell said at a panel hosted by the International Monetary Fund on April 21. “… I don’t think you’ll hear anyone at the Fed say that that’s going to be straightforward or easy. It’s going to be very challenging.”
“Economies don’t work without price stability,” he said. “We need that to have a strong labor market for an extended period of time.”The Fed will announce its rate hike decision at 2 p.m. Eastern time, at the conclusion of its two-day policy meeting. Afterward, Powell will answer questions on the economic outlook, inflation, the job market and global uncertainty clouding the path ahead.
The Fed is also expected to detail its plans to reduce its nearly $9 trillion balance sheet, which ballooned as part of the Fed’s rescue efforts during the pandemic. Fed leaders have said that the process will move faster than in 2017, the last time the Fed decided to shrink its portfolio.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Central Bank Watch: Fed Speeches, Interest Rate Expectations Update; May Fed Meeting PreviewRates markets are fully pricing in a 50-bps rate hike by the Federal Reserve on Wed. We’ll discuss how markets may react to the rate decision starting at 13:45 EDT/17:45 GMT on Wednesday.
Read more »
Fed expected to aggressively raise interest rates to tame inflationThe Fed is expected to raise interest rates this week with the biggest jump in more than 20 years as the central bank tries to get control of historic inflation.
Read more »
Here’s how you can prepare if there's a half point rate hike from the FedAs the Fed tries to pump the brakes on inflation, it will get more expensive to borrow. Here's how to prepare.
Read more »
Live Data Coverage: May Fed MeetingClick on the link below for Free Trading Guides & Forecasts: https://www.dailyfx.com/free-trading-...For more access to actionable and authoritative views on...
Read more »
S&P 500 Futures portray pre-Fed market consolidation, Japan’s holiday chains yieldsGlobal markets remain jittery, mildly positive though, as traders remain cautious ahead of the key Federal Open Market Committee (FOMC) meeting outcom
Read more »
4 things to know as the Fed embarks on its biggest fight against inflation in yearsThe Federal Reserve is expected to approve its largest interest rate hike in more than two decades this week. Additional rate increases are likely, as the Fed tries to regain control over inflation.
Read more »