Federal Reserve approves another 0.75-point rate hike

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Federal Reserve approves another 0.75-point rate hike
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The Fed announced its fourth 0.75% rate hike of 2022.

A 'For Sale' sign is posted in front of a single family home, Oct. 27, 2022, in Hollywood, Fla.The Federal Reserve said Wednesday it was raising its short-term borrowing rate another 0.75% to slow key areas of the economy and tame inflation, which is at a 40-year high.The aggressive move is the latest in a string of borrowing cost increases

The Federal Reserve is expected to raise the benchmark interest rate by 0.75%, repeating the same hike it imposed at each of the last three meetings, according to aof economists. Prior to this year, the Fed last matched a hike of this magnitude in 1994. The personal consumption expenditures price index - the inflation measure preferred by the Fed - stands at a year-over-year growth rate of 5.1%, government data showed last week.

Despite persistent inflation, growing evidence suggests that the Fed's moves have put the brakes on some economic activity.a 20-year high last week, as the U.S. faces an ongoing slowdown in home sales and housing construction.263,000 jobs in September and the unemployment rate fell slightly to 3.5% from 3.7%, exceeding expectations and demonstrating the continued strength of the labor market.

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