{"id":572924,"date":"2023-05-03T21:00:40","date_gmt":"2023-05-03T18:00:40","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/fed-hikes-rates-despite-recession-fears\/"},"modified":"2023-05-03T21:00:40","modified_gmt":"2023-05-03T18:00:40","slug":"fed-hikes-rates-despite-recession-fears","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/fed-hikes-rates-despite-recession-fears\/","title":{"rendered":"#Fed hikes rates despite recession fears"},"content":{"rendered":"<p><img decoding=\"async\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/05\/PowellJerome_072722_AP_Manuel-Balce-Ceneta.jpg?w=900\" \/><\/p>\n<div>\n<p>The Federal Reserve voted to raise interest rates Wednesday by another 0.25 percentage points, brushing aside concerns about the financial sector and an expected recession later this year.<\/p>\n<p>The Fed\u2019s rate-setting committee voted unanimously Wednesday to boost its baseline interest rate to a range of 5 to 5.25 percent, the point at which Fed officials expected in March to stop hiking rates, according projections from the Fed\u2019s last meeting.<\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p>The latest rate hike is the 10th in a row since the Fed began its program of quantitative tightening in March of last year. <\/p>\n<p>Over the past 14 months, the Fed has boosted borrowing costs and shrunk its balance sheet in a historically swift battle with inflation.<\/p>\n<p>There is still some doubt about what the Fed will do at its next meeting in June as both the broader economy and inflation continue to slow. The collapse of First Republic Bank and deepening concerns about financial stability have also shaken confidence in the economy.<\/p>\n<p>\u201cThe U.S. banking system is sound and resilient,\u201d according to a Wednesday statement from the Federal Open Market Committee (FOMC), the Fed\u2019s rate-setting panel.<\/p>\n<p>Even so, the FOMC acknowledged that \u201ctighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain.\u201d<\/p>\n<p>The Fed may pause on rate hikes and fulfill its March projections for the terminal rate. A rebound in inflation, however, could push Fed officials to keep boosting rates.<\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\"><\/aside>\n<p>Inflation has been decreasing steadily since the middle of last year, with the annual inflation rate falling to 5 percent in March, according to the Labor Department\u2019s consumer price index.<\/p>\n<p>The broader economy is also slowing under the weight of Fed rate hikes.<\/p>\n<p>U.S. gross domestic product grew at an annualized rate of 1.1 percent in the first quarter, according to Commerce Department data, much slower than the 2.6 percent growth rate in the final three months of 2022.<\/p>\n<aside class=\"ad-unit ad-unit--mr3_ab\"><\/aside>\n<p>While the unemployment rate has remained near 50-year lows, job gains have been slowing. <\/p>\n<p>Economists expect this trend to continue with the Friday release of the April jobs report.<\/p>\n<p>\u201cThe April jobs report should confirm that the labor market slowdown is well underway and that the economy is cooling,\u201d EY economist Lydia Boussour wrote in a Tuesday analysis.<\/p>\n<aside class=\"ad-unit ad-unit--mr4_ab\"><\/aside>\n<p>Boussour expects the U.S. to have added 175,000 jobs in April, \u201ca result that would imply a marked downshift in the three-month moving average of job growth from 345,000 to a much cooler 246,000,\u201d she wrote.<\/p>\n<p>Job openings also dipped to 9.6 million in March, according to data from the Labor Department Job Openings and Labor Turnover Survey (JOLTS) released Tuesday, the lowest number in nearly two years.<\/p>\n<p>\u201cJOLTS was a good case for signaling a pause in June,\u201d said Claudia Sahm, a former Fed research director and founder of Sahm Consulting, in an interview with The Hill.<\/p>\n<aside class=\"ad-unit ad-unit--mr5_ab\"><\/aside>\n<p>The failure of three major banks within two months and lingering concerns about the delayed impact of Fed rate hikes are also raising the stakes of future increases.<\/p>\n<p>\u201cHistorical recessions related to financial market problems tend to be more severe and persistent than average recessions,\u201d the Fed warned in the minutes of its March rate-setting committee meeting.<\/p>\n<p><em>Updated at 2:09 p.m.<\/em><\/p>\n<\/div>\n<p>Copyright 2023 Nexstar <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Media<\/a> Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\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\/business\/3984383-fed-hikes-rates-despite-recession-fears\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve voted to raise interest rates Wednesday by another 0.25 percentage points, brushing aside concerns about the financial sector and an expected recession later this year. The Fed\u2019s rate-setting committee voted unanimously Wednesday to boost its baseline interest rate to a range of 5 to 5.25 percent, the point at which Fed officials&#8230;<\/p>\n","protected":false},"author":1,"featured_media":572925,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/05\/PowellJerome_072722_AP_Manuel-Balce-Ceneta.jpg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[141564,117,70363,134661,134420,70550,139274,142885,73014,90482,82992,91261,70289,4965],"class_list":["post-572924","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-banking-crisis","tag-business","tag-civil-rights","tag-energy-environment","tag-equilibrium-sustainability","tag-federal-reserve","tag-federal-reserve-interest-rates","tag-federal-reserve-rate-hikes","tag-health-care","tag-house","tag-monetary-policy","tag-recession","tag-senate","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/572924","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=572924"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/572924\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/572925"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=572924"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=572924"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=572924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}