The Federal Reserve on Wednesday raised its benchmark interest rates by 75 basis points – or 0.75 percentage point – in its latest battle against Bidenflation.
The latest hike will bring the fed funds rate to a range of 2.25% to 2.50%, CNBC’s Steve Liesman reported.
CNBC’s Squawk Box reacted to the news:
Recall, the fed raised interest rates by 75 basis points last month.
The latest rate hike was expected.
This is the second rate hike in just over a month as the US economy officially enters a recession.
“Growth and consumer spending has slowed significantly in part reflecting lower disposable income and tighter financial conditions,” Fed Chair Jerome Powell said.
“Growth and consumer spending has slowed significantly in part reflecting lower disposable income and tighter financial conditions.”
Federal Reserve Chairman Jerome Powell explains why interest rates were raised.
— Newsmax (@newsmax) July 27, 2022
Stocks maintained gains Wednesday after the Federal Reserve announced its much anticipated 0.75 percentage point rate increase to fight inflation, at the conclusion of its two-day meeting.
The Dow Jones Industrial Average jumped 245 points, or 0.8%. The S&P 500 gained 1.8%, and the Nasdaq Composite increased 3%. Tech shares led gains after better-than-feared results from Alphabet and Microsoft.
The Fed’s second consecutive big hike was widely expected. The Fed statement was much the same although the central bank did give a nod to the slowing economy by adding a line saying, “Recent indicators of spending and production have softened.”
Fed Chair Jerome Powell held a press conference on Wednesday:
LIVE: Fed Chair Jerome Powell holds a press conference on the decision to raise interest rates by 75 basis points for the second straight month.
— Bloomberg (@business) July 27, 2022
As TGP’s Joe Hoft reported, under President Trump, Fed Chief Jerome Powell raised the rates so much that he almost created a market collapse himself. President Trump had the economy smoking and Powell couldn’t let that happen so he raised rates quarterly for President Trump’s first couple of years. Had Powell left the rates alone, the US economy would have been even better.
Under Obama, the Fed kept the rates at 0% for 7 years helping Obama’s economy. Yet none of that with President Trump. Who says the Fed is not political?