[MSN] The Fed, as widely expected, raised its key short-term rate by three-quarters of a percentage point to a range of 3.75% to 4%, a decidedly "restrictive" level intended to fight inflation by further slowing an already wobbly economy. Since March, the Fed has hoisted its federal funds rate; what banks charge each other for overnight loans -- from near zero, its most aggressive such initiative since 1980.
Rate was close to zero in Jan 2022. Powell hinted that the next few rate hikes might be less than 75 basis points. NYSE liked that. Mortgage rates probably will hit 8% soon. |