The Federal Reserve announced it would raise its interest rates on Wednesday, marking the first increase in three years as inflation continues to soar under the Biden administration.
Fed raises interest rates for first time in 3 years as inflation soarshttps://t.co/ZS7GJhp4kP
— FOX Business (@FoxBusiness) March 17, 2022
“The probability of a recession in the next year is not particularly elevated,” Chair Jerome Powell told reporters, according to Fox Business.
“All signs that are this is a strong economy, and one that will be able to flourish in the face of less accommodative monetary policy,” he added.
Fed raises interest rates by a quarter point to help curtail a historic surge in inflation. It’s the first increase in more than three years. https://t.co/Gp7Z5sj8EQ
— USA TODAY (@USATODAY) March 16, 2022
“The invasion of Ukraine by Russia is causing tremendous human and economic hardship,” the Fed said in a statement, according to USA Today.
“The implications for the U.S. economy are highly uncertain, but in the near term the invasion and related events are likely to create additional upward pressure on inflation and weigh on economic activity,” the report added.
The new hike is not enjoyable for Americans, but is also unsurprising given market changes in recent months.