Fed Officials Intend To Raise Rates Aggressively Next Month

Given the continued strength of the labor market and inflation, the Federal Reserve may decide to raise interest rates more than anticipated next month.

According to the New York Times, “Federal Reserve officials have united around a proposal to raise interest rates by three-quarters of a percent next month.” The current state of the economy comes at a time when the American central bank’s officials are unsure of when they may decide to hold off on interest rate increases.

The Times said that based on economic forecasts, remarks from the central bank, and a speech by the president, markets are betting that this trend will continue until at least December, or maybe by a meeting in November.

The Consumer Price Index results, which showed an increase of 6.6% over the year through September and represented a 40-year high, are another sign that rates are rising. These figures may prevent Fed members from delaying hiking rates in the future.

Fed hikes interest rate again to curb inflation

Vice Chair Lael Brainard, who spoke on the topic of rising inflation on October 10, predicted that the Fed’s restrictive monetary policies will continue. In addition to a pandemic that affected the entire world and supply lines, Brainard mentioned the invasion of Ukraine by Russia.

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