Inflation is at a 40-year high. The Fed announced these aggressive moves to fight it – By Paul Davidson (USA Today) / May 4, 2022
The Federal Reserve raised its key short-term interest rate by a half percentage point Wednesday, its largest hike since 2000, and signaled further big moves may lie ahead as officials scramble to curtail a historic spike in inflation.
“There is a broad consensus (among Fed policymakers) that additional (half-point) rate increases should be on the table at the next couple of meetings,” Fed Chair Jerome Powell said at a news conference.
Top economists expect the Fed to lift the rate to a range of 2.25% to 2.5% by the end of the year.
But Powell said Fed officials have no plans to boost rates by three-quarters of a point at any meeting, declaring it’s “not something (the Fed’s policymaking committee) is actively considering.” Economists had speculated such a scenario was possible.
