, the Federal Reserve of the United States kicked off the first day of a policy meeting that will last for two days. They are preparing for another round of combat against increasing inflation.){kind=link}
On Tuesday (July 26), the Federal Reserve of the United States kicked off the first day of a policy meeting that will last for two days. They are preparing for another round of combat against increasing inflation.
In an effort to alleviate some of the financial strain that has been placed on American households as a result of recent increases in prices, the Federal Reserve is widely anticipated to make an important announcement regarding an increase in interest rates on Wednesday. This would be the fourth such increase made by the Fed in 2018.
The difficulty for policymakers is to put a halt to inflation before it gets dangerously entrenched, while at the same time preventing the greatest economy in the world from entering a recession that would have repercussions all around the world.
Central bankers will keep raising rates until they see clear evidence that the rate is moving back towards the goal of 2%, and they have made it clear that they are willing to risk a downturn in order to stamp out inflation.
The Federal Open Market Committee, which is responsible for setting policy, is expected to raise the benchmark interest rate by another three-quarters of a percentage point on Wednesday. This will be the next step in the committee’s aggressive campaign to reduce demand and alleviate the price pressures that are placing a strain on American households and businesses.
According to a statement released by the Fed, the meeting of the FOMC started at 10:30 a.m. Eastern Time as planned.