The Clap
The Fed increased interest rates by 0.75% for the fourth consecutive time in an effort to curb inflation.
The Deets
The interest rate hike marks the sixth time this year that the Fed increased interest rates.
Following the announcement, the Fed released a policy statement stating that the Fed will consider the overall impact of interest rate hikes. This statement acted as a small beacon of hope for investors, but Federal Reserve Chair Jerome Powell did confirm more hikes to come during 2023.
So What
High inflation has been an ongoing economic burden throughout this year, as the Fed’s efforts in slowing it down have been nearly ineffective.
The continuous interest rate hikes will likely slow down the growth of the economy.
Now What
Markets tumbled following the news, reversing some of the earlier gains recorded this week.
