Oliver 10 0 0 3 min to read

US Fed introduces its fourth straight 0.75-point increase

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In the midst of the worst inflation in four decades, the US Federal Reserve raised interest rates for the fourth straight day by three-quarters of a percent on Wednesday.

The Federal Reserve increased the rate of short-term borrowing by 0.75 percentage points, making it the highest since January 2008.

According to a statement, the Fed will “consider the cumulative tightening of monetary policy, the lags with which monetary policy influences economic activity and inflation, and economic and financial developments.”

It will become more expensive for Americans to pay off debt or get a mortgage as a result of the rate increase, which is anticipated to hurt consumers’ wallets.

The closely monitored consumer price index revealed that while inflation increased by 0.4 percent month over month in September, it significantly decreased on an annual basis to 8.2 percent.

As concerns about the potential for a recession rise, politicians are increasingly urging the central bank to halt its rate increases.

The Fed, however, has not indicated that it will change direction because its objective is to bring inflation back down to its target of 2 percent, even if doing so results in a recession.

Labor markets are still strong in the interim. There are many available positions and little unemployment.

But if the central bank keeps raising rates at such a rapid clip, economists worry that there would be a recession in 2019.

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