Fed Voiced Determination at Last Meeting to Curb Inflation
WASHINGTON (AP) — Federal Reserve officials at their last meeting stressed their commitment to taming “unacceptably high’’ inflation before announcing that they were raising their benchmark interest rate by a substantial three-quarters of a point for a third straight time and signaling more large rate hikes ahead. They noted that hiring remained “robust,” which itself fuels high inflation as wages rise sharply.
FILE – Federal Reserve Board Chairman Jerome Powell speaks during a conversation with leaders from organizations that include nonprofits, small businesses, manufacturing, supply chain management , the hospitality industry, and the housing and education sectors at the Federal Reserve building, Friday, Sept. 23, 2022, in Washington. Powell said that stablecoins will need greater regulation as they become more widely used by consumers. Powell delivered his virtual remarks Tuesday, Sept. 27, to a conference on digital finance in Paris. (AP Photo/Manuel Balce Ceneta, File) The Associated PressWASHINGTON (AP) — Federal Reserve officials at their last meeting stressed their commitment to taming “unacceptably high’’ inflation before announcing that they were raising their benchmark interest rate by a substantial three-quarters of a point for a third straight time and signaling more large rate hikes ahead. In minutes from their Sept. 20-21 meeting released Wednesday, the Fed policymakers judged that a “softening of the labor market’’ — likely including higher unemployment — would be needed to curb the nation’s inflationary pressures. They noted that hiring remained “robust,” which itself fuels high inflation as wages rise sharply. The minutes show that the policymakers expressed concern during their meeting that the U.S. economy might be vulnerable to damage from a sputtering Chinese economy and a slowdown in Europe arising from Russia’s war against Ukraine . Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.