• Home
  • About
  • Blog
  • Advertise
  • Contact
No Result
View All Result
Ideasgist
Advert for @ideasdmedia
  • Home
  • MediaHot
  • TechnologyNew
  • Education
    • School
    • Jamb
    • University
    • Polytechnic
    • College of Education
  • Sport
    • Football
  • NewsTrending
    • Politics
    • Local
    • World
  • Entertainment
    • Celebrities
    • Media
  • Lifestyle
    • Fashion
    • Health
    • Relationship
  • More Topics
    • Business
    • Banking
    • Telecom
    • Job
  • Home
  • MediaHot
  • TechnologyNew
  • Education
    • School
    • Jamb
    • University
    • Polytechnic
    • College of Education
  • Sport
    • Football
  • NewsTrending
    • Politics
    • Local
    • World
  • Entertainment
    • Celebrities
    • Media
  • Lifestyle
    • Fashion
    • Health
    • Relationship
  • More Topics
    • Business
    • Banking
    • Telecom
    • Job
No Result
View All Result
Ideasgist
No Result
View All Result
  • Home
  • Media
  • Technology
  • Education
  • Sport
  • News
  • Entertainment
  • Lifestyle
  • More Topics
Ideasgist Advert Ideasgist Advert Ideasgist Advert
ADVERTISEMENT
Home News

U.S Increases Interest Rates, Signals Aggressive Battle Against Inflation

by Oluwaseyi Olaniyi
March 16, 2022
in News, world
Reading Time: 3 mins read
A A
U.S Increases Interest Rates, Signals Aggressive Battle Against Inflation

The Federal Reserve on Wednesday raised interest rates by a quarter of a percentage point and laid out an aggressive plan to push borrowing costs to restrictive levels by next year as concerns about high inflation and the war in Ukraine overtook the risks of the coronavirus pandemic.

The U.S. central bank, in a surprise move, projected the equivalent of quarter-percentage-point rate increases at each of its six remaining policy meetings this year, which would push its benchmark overnight interest rate to a range between 1.75% to 2.00% by the end of 2022. It is projected to further rise to 2.80% by the end of next year, above the 2.40% level officials now feel would slow the economy.

Fed Chair Jerome Powell, speaking after the end of the latest two-day policy meeting, said the economy is strong and that officials will raise rates more aggressively at future meetings if needed to control inflation.

“The way we’re thinking about this is that every meeting is a live meeting,” Powell said in a news conference. “We’re going to be looking at evolving conditions, and if we do conclude that it would be appropriate to move more quickly to remove accommodation, then we’ll do so.”

AlsoRead:

Konga Raises Alarm Over Scammers Using Its Brand to Defraud People

Nigeria, Portugal Sign Multiple MoUs to Increase Cooperation, Diplomacy, Research, Others

FG Wades Into Ike Ekweremadu’s UK Arrest, Probes Organ Donor’s Data Privacy Breach

Powell said the U.S. economy is strong and should “flourish” even in an environment where borrowing costs are rising and stimulus is being removed. “It’s clearly time to raise interest rates and begin the balance sheet shrinkage,” he said.

An economic slowdown, however, may already be underway. Fed policymakers marked down their gross domestic product growth estimate for 2022 to 2.8%, from the 4% projected in December, as they began to discount the new risks facing the global economy.

“The invasion of Ukraine by Russia is causing tremendous human and economic hardship. The implications for the U.S. economy are highly uncertain, but in the near term the invasion and related events are likely to create additional upward pressure on inflation and weigh on economic activity,” the Fed said in its policy statement.

STUBBORN INFLATION

The statement, which dropped the now longstanding direct reference to the coronavirus as the most direct economic risk facing the country, marked the end of the Fed’s full-on battle against the pandemic, as it raised the federal funds rate and pledged “ongoing increases” to curb the highest inflation rates in 40 years.

The interest rate path shown in new projections by policymakers is tougher than expected, reflecting Fed concern about inflation that has moved faster and threatened to become more persistent than expected, and put at risk the central bank’s hope for an easy shift out of the emergency policies put in place to fight the fallout from the pandemic.

Major U.S. stock indexes briefly pared gains after the release of the statement and projections before recovering, with the S&P 500 (.SPX) index last up about 1.1% on the day.

The yield on the benchmark 10-year Treasury note briefly rose to its highest level since May 2019, while the 2-year Treasury yield , which better reflects market views of where Fed policy is going, briefly topped the 2.0% level for the first time since May 2019. The dollar was trading slightly lower.

Even with the tougher rate increases now projected, the Fed expects inflation to remain more than double its 2% target this year, dropping to 2.7% in 2023 and to 2.3% in 2024. The unemployment rate is seen dropping to 3.5% this year and remaining at that level next year, but is projected to rise slightly to 3.6% in 2024.

The new statement said the Fed expects to begin reducing its nearly $9 trillion balance sheet “at a coming meeting.”

St. Louis Fed President James Bullard was the only policymaker to dissent in Wednesday’s policy decision.


Like us on Facebook. Follow us Twitter and Instagram. Subscribe to our YouTube Channel. Join our WhatsApp Group and Telegram Channel. Read more on Latest News, Tech News, Media and lot more.

SUBSCRIBE TO OUR NEWSLETTER





Tags: InflationInterest Rateunited state
ShareTweetSendShare
Plugin Install : Subscribe Push Notification need OneSignal plugin to be installed.
ADVERTISEMENT
Previous Post

2023 Presidency: Other Candidates Are Not Stable —Tinubu Tells APC Lawmakers

Next Post

Electricity: National Grid Restored – Minister Of Power Abubakar Aliyu

Oluwaseyi Olaniyi

Oluwaseyi Olaniyi

Related Posts

SEC Issues New Regulations On Issuance, Exchange of Cryptocurrencies In Nigeria
Tech

Bitcoin Surge Above $31K Amid Pending US Inflation Data

June 6, 2022
Russia: U.S. Officials Repeatedly Urged China to Help Avert War in Ukraine
News

Russia: U.S. Officials Repeatedly Urged China to Help Avert War in Ukraine

February 25, 2022
US Govt Lifts Suspension On ‘Drop Box’ Visa Applications In Nigeria
News

US Govt Lifts Suspension On ‘Drop Box’ Visa Applications In Nigeria

February 1, 2022
Food Prices Rise As Nigeria’s Inflation Drops For Fifth Straight Month
News

Food Prices Rise As Nigeria’s Inflation Drops For Fifth Straight Month

September 15, 2021
US State Offers Guns, $1m As Prizes For Residents Who Take COVID-19 Vaccine
News

US State Offers Guns, $1m As Prizes For Residents Who Take COVID-19 Vaccine

June 2, 2021
US University Names 20-year-old Nigerian Lady As School’s Overall Best Student
News

US University Names 20-year-old Nigerian Lady As School’s Overall Best Student

June 2, 2021
Load More
Next Post
Electricity: National Grid Restored – Minister Of Power Abubakar Aliyu

Electricity: National Grid Restored - Minister Of Power Abubakar Aliyu

Please login to join discussion

#Talk – Sp3ncer (Prod , m&m Deravibez)

http://ideasgist.com.ng/wp-content/uploads/2022/11/Talk-Sp3ncer-Prod-mm-Deravibez-mp3.mp3
  • Trending
  • Comments
  • Latest

How And Reason Why Rag Day Come To An Existence

July 29, 2016
Ectolife Hashem

Introducing Ectolife, the World’s First Artificial Womb Facility.

December 11, 2022
BlueSky

Twitter Founder Jack Dorsey is Creating a New Social Network. Look Out, Elon.

December 11, 2022
Waec

How to Know If Your WAEC Result Has Been Uploaded

October 18, 2022
Lasustech

LASUSTECH Celebrates Successful Hosting of NUC Resources Verification Team.

October 1, 2022 - Updated on October 18, 2022
Saving Icon 3d Illustration from Investment Collection Creative Saving 3d Icon Web Design Templates Infographics More 67690

How To Keep Your Savings Safe and Earn Monthly Interest: The Right Investment Options for You

September 8, 2022
Jamb

Can’t Input or Access Your Registration Number on Jamb?

September 8, 2022
Twitter Edit Button 768x432

Twitter Is Finally Adding An Edit Button!

September 5, 2022
Sanwo-Olu Donates Two Two High-Capacity Buses, Fast-Speed Internet To Students Of Newly Upgraded Lagos State University of Science and Technology

Sanwo-Olu Donates Two Two High-Capacity Buses, Fast-Speed Internet To Students Of Newly Upgraded Lagos State University of Science and Technology

August 28, 2022
Lagos State University of Science and Technology (LASUSTECH) Takeoff Courses 2022/2023

Lagos State University of Science and Technology (LASUSTECH) Takeoff Courses 2022/2023

August 4, 2022
Big Brother Naija Season 7

Big Brother Naija 2022 Season 7

July 28, 2022
Facebook Instagram Twitter Youtube TikTok Telegram

An online media website for latest news and updates in Technology, Business, Education, Sports, Politics, Entertainment, Health, Fashion...and many more.

About

  • Advertise
  • Contact
  • Newsletter

Quick Links

  • Privacy
  • Terms of Use
  • DMCA

2022 Ideasgist ™ | A Subsidiary of iMultiple Holdings | All rights reserved.
Website Developed by Ideas Digital Media.

No Result
View All Result
  • Home
  • Media
  • Technology
  • Education
    • School
    • Jamb
    • University
    • Polytechnic
    • College of Education
  • Sport
    • Football
  • News
    • Politics
    • Local
    • World
  • Entertainment
    • Celebrities
    • Media
  • Lifestyle
    • Fashion
    • Health
    • Relationship
  • More Topics
    • Business
    • Banking
    • Telecom
    • Job

2022 Ideasgist ™ | A Subsidiary of iMultiple Holdings | All rights reserved.
Website Developed by Ideas Digital Media.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Please wait...

Subscribe to our newsletter

Want to be notified when our article is published? Enter your email address and name below to be the first to know.
SIGN UP FOR NEWSLETTER NOW
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?