Despite inflation steadily cooling in recent months, the Federal Reserve is expected to approve what would be the 11th interest rate increase since March 2022 this afternoon.
If a rate hike is approved, the benchmark lending rate will raise to a target range of 5.25-5.5%, the highest level in 22 years.
The more pressing matter will be whether Federal Open Market Committee officials feel they’ve gone far enough, or if there’s still more work to do in the fight against inflation.
Central bank policymakers almost unanimously believe inflation is too high, but hiking more from here carries risks to an economy that many think is heading for at least a mild recession.
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Much depends on what economic data show in the next eight weeks. Fed Chair Jerome Powell’s remarks during an annual gathering of central bankers and economists in Wyoming next month could shed more light on what to expect for the September decision.
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