Name: Fed raises interest rates by three-quarters of a point
Uploaded: 2022-06-15
Duration: 1 min 46 s
Description: It is the largest hike in nearly three decades.

It is the largest hike in nearly three decades.

Fed raises interest rates by three-quarters of a point

Politics

I will begin with one overarching message, we at the Fed understand the hardship that high inflation is causing. We're strongly committed to bringing inflation back down and we're moving expeditiously to do so. We have both the tools we need and the resolve that it will take to restore price stability on behalf of american families and businesses. It is essential that we bring inflation down if we are to have a sustained period of strong labor market conditions that benefit all from the standpoint of our congressional mandate to promote maximum employment and price stability. The current picture is plain to see, the labor market is extremely tight and inflation is much too high against this backdrop today, the Federal Open Market Committee raised its policy interest rate by three quarters of a percentage point and anticipates that ongoing increases in that rate will be appropriate. In addition, we are continuing the process of significantly reducing the size of our balance sheet overall economic activity edged down in the first quarter as unusually sharp swings in inventories and net exports more than offset continued strong underlying demand. Recent indicators suggest that Real GDP growth has picked up this quarter with consumption spending remaining strong. In contrast, growth in business, fixed investment appears to be slowing and activity in the housing sector looks to be softening, in part reflecting higher mortgage rates. The tightening in financial conditions that we've seen in recent months should continue to temper growth and help bring demand into better balance with supply