Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Al Mayadeen correspondent to southern Lebanon: Israeli warplanes launched a raid on the Ksar Zaatar neighborhood in western Nabatieh.
Al Mayadeen's correspondent in Gaza: The tower destroyed by the Israeli occupation in Gaza includes media offices, including Al Mayadeen's bureau.
Al Mayadeen's correspondent in Gaza: Four fetuses and three premature babies died at Nasser Medical Complex due to malnutrition
Lebanese Ministry of Health: One person was killed in an Israeli airstrike on a car in the town of Burj Qalawieh, south Lebanon.
Al Mayadeen correspondent: The first ship of the Maghreb fleet delivering aid to break the siege on Gaza departs from the port of Gammarth in Tunisia.
Channel 12: Airspace closed at Ramon Airport due to fears of drone infiltration
IOF Spokesperson: Sirens sounded over an aircraft infiltration in the Bir Ora area, and details are being examined
Drone infiltration sirens sound north of the Gulf of Aqaba
Al Mayadeen's correspondent in Gaza: The Israeli occupation carried out five extremely violent raids on the western areas of Gaza City
Al Mayadeen's correspondent in Gaza: The Israeli occupation carried out major bombings in the Gaza Strip, the most violent since October 7

Fed delivers another steep rate hike with more to come

  • By Al Mayadeen English
  • Source: Agencies
  • 2 Nov 2022 23:17
4 Min Read

The US central bank raises the benchmark borrowing rate by 0.75 percentage points.

  • x
  • Fed delivers another steep rate hike with more to come.
    Fed delivers another steep rate hike with more to come.

As was to be expected, the Federal Reserve increased interest rates sharply on Wednesday, as its efforts to tame soaring inflation gained more significance in the wake of the crucial US midterm elections.

President Joe Biden must fight to keep both chambers of Congress under his control as high inflation squeezes American families of all political persuasions.

Prices have not been significantly affected by the Fed's aggressive rate hikes so far this year, but they have fueled worries about a potential recession even though the labor market is still robust.

In its all-out effort to contain inflation not seen since the 1980s, the US central bank increased the benchmark borrowing rate by 0.75 percentage points, the fourth such increase in a row and the sixth this year.

The Federal Open Market Committee (FOMC), which sets policy, stated that additional increases will be required to rein in rising prices, but that it will consider the impact on the economy when determining the pace of subsequent moves. This leaves open the possibility that smaller steps will be taken in the coming months.

Read next: Price index rises despite Fed bids to combat inflation

The benchmark lending rate has increased by three-quarters of a percentage point to 3.75–4.0%, which is the highest level since January 2008. But Fed Chair Jerome Powell issued a warning, saying that policymakers are not yet prepared to stop their initiatives.

Related News

Seoul presses Washington after Georgia raid on South Korean workers

Maduro warns of threats, urges 'battle for truth' to defend Venezuela

As the housing market sharply cooled amid higher borrowing costs, the key inflation measures demonstrated the increase in prices and the tight labor market, with job openings on the rise and private hiring accelerating in October. 

"It will take time, however, for the full effects of monetary restraint to be realized, especially on inflation," Powell told reporters.

"It's very premature in my view to be thinking about or talking about pausing our rate hike. We have a ways to go." But he added that at the meeting in December, the committee could start talking about the prospect of easing up on the rapid rate increases.

Slow growth 

Politicians are putting more pressure on Fed officials as they attempt to fight inflation without sending the economy into a recession. Powell acknowledged that slowing inflation while averting a downturn "likely" requires below-trend growth and that the window for achieving a soft landing has shrunk.

Inflation is driving voters away from Biden, and polling data suggests that a "red wave" could sweep the opposition Republicans into control of the House and Senate.

Read next: US Fed set for further steep rate hike as recession fears loom

Republicans blame Biden squarely for inflation and slower growth, while the President's Democrats are concerned that the Fed's actions will result in higher unemployment. However, Powell has argued that allowing high inflation to persist would cause American families and workers even more suffering.

Powell brushed off criticism that the central bank had moved too quickly during his press conference on Wednesday and noted that the future of the biggest economy in the world is incredibly uncertain. "No one knows whether there's going to be a recession or not, and if so, how bad that recession would be," he said.

The Fed's actions, according to White House spokeswoman Karine Jean-Pierre, are "part of our transition" to "stable and steady growth with lower inflation."

  • United States
  • Federal reserve
  • US inflation

Most Read

The damaged building in the Katara neighborhood, Doha, Qatar, September 9, 2025 (Social media)

Hamas delegation survives Israeli assassination attempt in Qatar

  • Politics
  • 9 Sep 2025
Pro-"Israel" conservative Charlie Kirk shot during Utah speech

American far-right activist Charlie Kirk shot dead during Utah speech

  • US & Canada
  • 11 Sep 2025
Uprising against Volker Turk at the Human Rights Council over Gaza.

Uprising against Volker Turk at the Human Rights Council over Gaza

  • Politics
  • 12 Sep 2025
A screengrab from the ad played on Fox News. (X Screengrab)

Fox airs ad warning Trump not to let Netanyahu 'play' him on Gaza

  • US & Canada
  • 11 Sep 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
President Nicolas Maduro gestures to supporters during the inauguration of a monument in China's honor on the 80th anniversary of the end of World War II, in Caracas, Venezuela, Wednesday, September 3, 2025 (AP)
Politics

Maduro warns of threats, urges 'battle for truth' to defend Venezuela

Damage is seen after an Israeli strike targeted a compound that hosted Hamas' political leadership in Doha, Qatar, Wednesday, Sept. 10, 2025. (AP Photo/Jon Gambrell)
Politics

Netanyahu informed Trump before deadly attack in Doha: Reports

Israeli Prime Minister Benjamin Netanyahu and US Secretary of State Marco Rubio hold a joint press conference at the Prime Minister's Office, during Rubio's visit, in occupied al-Quds, occupied Palestine, Monday, September 15, 2025 (AP)
Politics

Netanyahu warns of Israeli isolation, calls to boost self-reliance

Spain axes €700Mln arms deals with 'Israel' over Gaza genocide
Politics

Spain axes €700Mln arms deals with 'Israel' over Gaza genocide

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS