Federal Reserve Hikes Interest Rates , by Three-Quarters of a Point.
The interest rate hike was announced on June 15 as a means of combatting rising inflation.
The hike is the steepest announced by
the Federal Reserve since 1994.
Fed Chair Jerome Powell
made a statement to
reporters following
the announcement.
We thought that strong action was warranted at this meeting, Jerome Powell, Chair of the Federal Reserve,
via 'The New York Times'.
Inflation remains elevated, reflecting supply-and-demand imbalances related to the pandemic, higher energy prices and broader price pressures, Federal Reserve Statement,
via 'The New York Times'.
It’s a time when we’re not seeing progress — and we want to
see progress, Jerome Powell, Chair of the Federal Reserve,
via 'The New York Times'.
Amid wide speculation that the U.S. economy is headed toward recession, Powell was clear about the Fed's intentions.
We’re not trying to induce a recession now, let’s be clear about that, Jerome Powell, Chair of the Federal Reserve,
via 'The New York Times'.
There’s always a risk of going too far or going not far enough. It’s going to be a difficult judgment to make, or maybe not, maybe it will be quite clear, Jerome Powell, Chair of the Federal Reserve,
via 'The New York Times'.
Powell stated that other markers
of the economy remain robust.
There’s no sign of a broader slowdown, that I can see, in the economy. We see job growth slowing, but it’s still at quite robust levels, Jerome Powell, Chair of the Federal Reserve,
via 'The New York Times'.
Powell acknowledged that what labor market officials want to see is increased opportunity and higher wages. .
However, he stated that
inflation could hamper both.
You really cannot have the kind of labor market we want without price stability. To get there, it’s not going to happen with the levels of inflation we have, Jerome Powell, Chair of the Federal Reserve,
via 'The New York Times'
