Currency traders show stacks of US dollars at the currency exchange centre in Herat city on August 4, 2022. (Photo by Lillian SUWANRUMPHA / AFP) (Photo by LILLIAN SUWANRUMPHA/AFP via Getty Images)
UPDATED 5:59 PM PT – Wednesday, November 2, 2022
The Federal Reserve makes yet another drastic increase to interest rates.
The Central Bank made the move to raise interest rates 0.75% on Wednesday. This increase marks the sixth time this year interest rates have raised.
Federal Reserve Chair Jerome Powell spoke about the decision in a press conference. He said that there is significant uncertainty around the level of rates needed to bring down inflation. However, he said that there is still a way to go.
Despite continuing to take a restrictive approach, Powell said the U.S. economy is strong.
“Here in the United States, we have a stronger economy,” Powell said. “We have an economy where inflation is running at 5% at core PC inflation which is a really good indicator of what’s going on for us the way we see it is running at 5.1% of a 12-month basis and similar to that 3,6,9-month basis. So, we know we need to use our tools to get inflation under control.”
The Fed predicts that another hike will happen in December, likely at around half a percentage point.