The Federal Reserve continued its efforts to curb rising inflation on Wednesday, announcing that it will raise the target range for the federal funds rate to between 3% and 3.25%, marking yet another 0.75% increase following similar actions in June and July.
Businesses are dealing with a cavalcade of challenges in 2022, not least of all being rising interest rates and inflation. Juanita Schwartzkopf of Focus Management Group provides detailed guidance on how to help borrowers deal with increasing operating expenses and the rising rate environment.
On Wednesday, the Federal Reserve made its third hike to the federal funds rate in 2022, increasing the rate to a range between 1.5% and 1.75%. According to Yahoo Finance, the 0.75 percentage point increase was “the largest move [the Fed] has made in a single meeting since 1994.”
On Wednesday, the Federal Reserve unveiled its plan to raise the federal funds rate to 0.75% to 1%. According to Yahoo Finance, the 0.5% hike was “the most aggressive increase made in a single meeting since May 2000.”
Reuters reported the biggest U.S. banks are expected to kick off the earnings season on a sour note next week due to falling interest rates.
The Federal Reserve raised the target range for the federal funds rate to 2% to 2-1/4% in view of realized and expected labor market conditions and inflation.
The Wall Street Journal reported that while the Fed has raised interest rates seven times, banks have not passed those increases on to their depositors, but are offering cash payment to new customers.
The Federal Reserve raised interest rates by a quarter-point, its first rate hike this year, in a decision that was widely anticipated by markets.
The Federal Reserve left interest rates unchanged at its latest meeting and noted the economy slowed down at the end of last year. Stocks traded lower with the DJIA down 220 points by market close.