Home » Economy » Fed barrels toward another 75 basis point rate hike as high inflation persists
Fed barrels toward another 75 basis point rate hike as high inflation persists
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The Federal Reserve is likely to approve a fourth consecutive super-sized interest rate hike when it meets in November as policymakers grow alarmed about unrelentingly high inflation.
The shift toward another 75 basis point rate hike comes just days after new government data suggested that inflationary pressures in the economy remain strong and undeterred despite increasingly tight monetary policy.
The staying power of high inflation, along with the continued strength of the labor market, has prompted Fed officials to abandon discussion of a smaller rate hike during their November meeting, according to the New York Times.
Policymakers previously anticipated that they would consider slowing their aggressive tightening campaign but were swayed against doing so by a string of hot economic reports, the Times reported.