Fed lifts rate by quarter-point but says inflation is easing

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The New York Stock Exchange, Wednesday, Dec. 14, 2022, in New York. The Federal Reserve raised interest rates by half a point on Wednesday. Stocks are off to a weak start on Wall Street as worries grow that the Federal Reserve and other central banks are willing to bring on a recession if that’s what it takes to get inflation under control. (AP Photo/Julia Nikhinson)

The Associated Press

WASHINGTON (AP) – The Federal Reserve extended its fight against high inflation by raising its key interest rate a quarter-point, its eighth hike since March.

And the Fed signaled that even though inflation is easing, it remains high enough to require further rate hikes.

At the same time, Chair Jerome Powell said at a news conference that the Fed recognizes that the pace of inflation has cooled  – a signal that it could be nearing the end of its rate increases.

The stock and bond markets rallied during his news conference, suggesting that they anticipate a forthcoming pause in the Fed’s credit tightening.

Read the full story on AP News right here.

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2/1/2023 4:49:30 PM (GMT -6:00)

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