{"id":21985,"date":"2023-07-27T13:58:37","date_gmt":"2023-07-27T13:58:37","guid":{"rendered":"https:\/\/blog.researchandranking.com\/?p=21985"},"modified":"2023-07-28T11:51:54","modified_gmt":"2023-07-28T11:51:54","slug":"federal-reserve-raises-target-rate","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/federal-reserve-raises-target-rate\/","title":{"rendered":"Federal Reserve Raises Target Rate to 22-Year High To Combat Inflation Surge"},"content":{"rendered":"
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Resuming the Rate-Hike Campaign<\/h2>\n\n\n\n

The Federal Reserve rate hike pause in the previous FOMC meeting was viewed as a hawkish pause, leaving the possibility of a rate hike open for the next meeting in July. As anticipated, the Federal Reserve recently resumed its rate-hike campaign, raising its target rate by 25 basis points. This move now brings the overnight federal funds rate to a range of 5.25% to 5.5%, marking the highest level in 22 years.<\/p>\n\n\n\n

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Source: Baron’s<\/figcaption><\/figure>\n\n\n\n

Combatting Rising Prices<\/strong><\/p>\n\n\n\n

The primary motivation behind the rate hike is the Federal Reserve’s ongoing efforts to combat the price surge, even though headline inflation<\/a> has started to ease. The US economy has been grappling with inflation concerns for several months, experiencing high rates<\/a>. However, recent data indicates a significant improvement, with inflation now measured at 3%, down from the alarming 40-year high of 9.1%. This marks the twelfth month of decelerating price increases, bringing it closer to the Fed’s target of 2%.<\/p>\n\n\n\n

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