Officials from the Federal Reserve (Fed) announced their fourth consecutive 75 basis-point increase in interest rates while also hinting that their vigorous battle to control inflation may be nearing its conclusion.
In its statement following a two-day meeting. The Federal Open Market Committee stated that “ongoing hikes” will probably be required to raise rates to a level that is “adequately tight to bring inflation to 2% over time.”
The Federal Reserve added the subsequent sentence to its statement. “In determining the pace of potential increase in the target range.
The Committee could well take into consideration the cumulative tightness of monetary policy. The lags in which monetary policy impacts economic growth and inflation, and the economy and financial developments.”
Despite significant slowdowns in industries like housing and manufacturing, statistics on inflation and employment remain high. The target for the baseline fed funds rate is increase by the majority consent to a range of 3.75 to 4%. Its highest possible level since 2008.
The declaration reaffirms policymakers’ commitment to their fight against inflation. But it also acknowledges that interest rate rises take time to take effect.
At his news conference in Washington later in the day. Chair Jerome Powell will receive the opportunity to go into more detail on the prospects for next meetings.
He will be question by investors on whether the Fed will limit the rate of interest rate rises at of next December meeting.