{"id":546545,"date":"2023-02-01T22:01:11","date_gmt":"2023-02-01T19:01:11","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/fed-raises-interest-rates-in-smallest-hike-since-march\/"},"modified":"2023-02-01T22:01:11","modified_gmt":"2023-02-01T19:01:11","slug":"fed-raises-interest-rates-in-smallest-hike-since-march","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/fed-raises-interest-rates-in-smallest-hike-since-march\/","title":{"rendered":"#Fed raises interest rates in smallest hike since March"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a34d71d4f710\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a34d71d4f710\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/fed-raises-interest-rates-in-smallest-hike-since-march\/#Fed_raises_interest_rates_in_smallest_hike_since_March\" >Fed raises interest rates in smallest hike since March<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"Fed_raises_interest_rates_in_smallest_hike_since_March\"><\/span>Fed raises interest rates in smallest hike since March<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/powelljerome_AP_110222.jpg?w=900\" \/><\/p>\n<div>\n<p>The Federal Reserve raised interest rates by 0.25 percentage points on Wednesday at its first meeting of the year, its eighth straight rate hike since it began a program of tightening borrowing costs last year in an effort to bring down inflation.<\/p>\n<p>It\u2019s the smallest rate hike since last March, coming off a 50 basis point hike in December that followed four 75 basis point hikes starting last June. It will lift the federal funds rate to a range of 4.5 to 4.75 percent as the Fed pushes toward a projected target rate of 5.1 percent, which was last updated in December.<\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p>The more modest increase comes as inflation has been falling throughout the economy. The consumer price index (CPI) has dropped every month since June, landing at 6.5 percent annually in December. The personal consumption expenditures price index (PCE), which is the Fed\u2019s preferred gauge of inflation, has fallen to 5 percent annually, off a June high of 6.8 percent.<\/p>\n<p>With inflation coming down and unemployment levels remaining at a 50-year low, the Fed is aiming for what it calls a \u201csoft landing,\u201d meaning it wants to bring inflation back down to an annual rate of 2 percent without triggering a serious recession.<\/p>\n<p>\u201cThere has been a significant deceleration in inflation in the second half of 2022, and simultaneously, productivity rebounded. That opens the door for the FOMC [Federal Open Markets Committee] to scale back its rate increases to increments of 25 basis points. In view of this, there is a strong chance the FOMC could engineer a soft landing,\u201d Boston College economist Brian Bethune wrote in an analysis of the Fed\u2019s current thinking.<\/p>\n<p>But slowing down rate hikes too quickly could risk entrenching inflation above the Fed\u2019s target \u2014 something banks and investors in the private sector are wary of.<\/p>\n<p>\u201cThe pace of increase in employment costs remains high and is not consistent with a 2 percent inflation rate that the Fed targets, which means Fed officials have more work to do,\u201d Kathy Bostjancic, an analyst for insurance company Nationwide, wrote in a statement on Tuesday.<\/p>\n<p>At a press conference later on Wednesday, Fed Chairman Jerome Powell will likely signal whether the central bank intends to continue raising interest rates after its March meeting, at which another 0.25-point rate hike is expected, or if the March hike will be the last.<\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\"><\/aside>\n<p>Further hikes could mean that the Fed\u2019s terminal interest rate may end up above the 5.1 percent rate that\u2019s currently projected.<\/p>\n<p>It could also mean that the Fed\u2019s projected unemployment rate for 2023, which stands at 4.6 percent, could also climb higher. The current unemployment rate is 3.5 percent, more than a full percentage point below the estimate for this year.<\/p>\n<p><em>Developing<\/em><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thehill.com\/policy\/finance\/3838118-fed-raises-interest-rates-by-25-basis-points-in-smallest-hike-since-march\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fed raises interest rates in smallest hike since March The Federal Reserve raised interest rates by 0.25 percentage points on Wednesday at its first meeting of the year, its eighth straight rate hike since it began a program of tightening borrowing costs last year in an effort to bring down inflation. It\u2019s the smallest rate&#8230;<\/p>\n","protected":false},"author":1,"featured_media":546546,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/powelljerome_AP_110222.jpg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[134344,134417,134343,134353,134447,134420,139273,70550,139274,139275,80445,70551,134409,78738,70289],"class_list":["post-546545","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-administration","tag-blog-briefing-room","tag-campaign","tag-court-battles","tag-energy-and-environment","tag-equilibrium-sustainability","tag-fed-announcement-today-live","tag-federal-reserve","tag-federal-reserve-interest-rates","tag-federal-reserve-rates","tag-healthcare","tag-inflation","tag-interest-rate-hikes","tag-jerome-powell","tag-senate"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/546545","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=546545"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/546545\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/546546"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=546545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=546545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=546545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}