Federal Reserve Ready to Raise Interest Rates Soon as Inflation Swells Across US
By Fox Business // January 26, 2022
ABOVE VIDEO: Fed Chair Powell holds press conference following FOMC meeting.
(FOX BUSINESS) – The Federal Reserve on Wednesday signaled it could “soon” raise interest rates for the first time in three years, paving the way for a March liftoff as policymakers seek to keep prices under control and combat the hottest inflation in nearly four decades.
Although central bank officials left rates unchanged – where they have sat unchanged since March 2020 – during their two-day, policy-setting meeting this week, they indicated broad support to begin aggressively normalizing policy, including raising rates, amid growing concern over the rapid increase in consumer prices.
The rate increase would mark the first since December 2018.
“With inflation well above 2 percent and a strong labor market, the committee expects it will soon be appropriate to raise the target range for the federal funds rate,” the Fed said in its post-meeting statement. The central bank’s next meeting is slated to take place on March 15-16.
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