Red Lake Nation News - Babaamaajimowinan (Telling of news in different places)

Fed plans to raise rates starting in March to cool inflation

 

January 27, 2022

Brendan Smialowski, Associated Press

Federal Reserve Board Chairman Jerome Powell listens during his re-nominations hearing before the Senate Banking, Housing and Urban Affairs Committee, Tuesday, Jan. 11, 2022, on Capitol Hill in Washington. (Brendan Smialowski/Pool via AP)

WASHINGTON - The Federal Reserve signaled Wednesday that it will begin a series of interest-rate hikes in March, reversing pandemic-era policies that have fueled hiring and growth - and stock market gains - but also stubbornly high inflation.

Chair Jerome Powell said at a news conference that inflation has gotten "slightly worse" since the Fed last met in December. He said raising the Fed's benchmark rate, which has been pegged at zero since March 2020, will help prevent high prices from becoming entrenched.

Seeking to calm fears that higher rates might hurt the economy, Powell said the central bank can manage the process in a way that prolongs growth and keeps unemployment low. "I think there is quite a bit of room to raise interest rates without threatening the labor market," he said.

https://www.startribune.com/fed-plans-to-raise-rates-starting-in-march-to-cool-inflation/600139661/

 

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