![]() ![]() ![]() This doesn't seem like that now," he said. It's a broad-based decline across many industries that's sustained more than a couple of months. ![]() Powell said he does not think the economy is in recession, though growth was negative in the first quarter and was expected to be barely positive in the second quarter. Officials again described inflation as "elevated" and ascribed the situation to supply chain issues and higher prices for food and energy along with "broader price pressures." In its post-meeting statement, the rate-setting Federal Open Market Committee cautioned that "recent indicators of spending and production have softened." "Nonetheless, job gains have been robust in recent months, and the unemployment rate has remained low," the committee added, using language similar to the June statement. Central bankers have emphasized the importance of bringing down inflation even if it means slowing the economy. Stocks hit their highs after Fed Chair Jerome Powell left the door open about its next move at the September meeting, saying it would depend on the data. Markets largely expected the move after Fed officials telegraphed the increase in a series of statements since the June meeting. ![]() The increase takes the funds rate to its highest level since December 2018. While the fed funds rate most directly impacts what banks charge each other for short-term loans, it feeds into a multitude of consumer products such as adjustable mortgages, auto loans and credit cards. In taking the benchmark overnight borrowing rate up to a range of 2.25%-2.5%, the moves in June and July represent the most stringent consecutive action since the Fed began using the overnight funds rate as the principal tool of monetary policy in the early 1990s. The Federal Reserve on Wednesday enacted its second consecutive 0.75 percentage point interest rate increase as it seeks to tamp down runaway inflation without creating a recession. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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