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
Factions' statement: The attendees agreed to support and continue implementing the ceasefire agreement measures, including the withdrawal of the occupation and lifting the siege.
Factions' statement: Calling for an end to all forms of torture and violations against prisoners in occupation prisons and the necessity of obligating the occupation to do so.
Statement: The current moment is crucial, making the meeting a true turning point toward national unity in defense of our people and their right to life, dignity, and freedom.
Factions' statement: Call for an urgent meeting of all Palestinian forces and factions to agree on a national strategy.
Factions' statement: Continuing joint work to unify visions and positions to confront the challenges facing the Palestinian cause.
Statement of the factions: Emphasis on the unity of the Palestinian political system and the independent national decision.
Statement: Approval to establish an international committee to oversee the financing and implementation of the reconstruction of the Gaza Strip.
Statement: The committee is responsible for managing life and services in cooperation with Arab brothers and international institutions, based on transparency and accountability.
Resistance factions' statement: Agreement to hand over the administration of the Gaza Strip to a temporary Palestinian committee of independent technocrats.
Al Mayadeen's correspondent: Two people martyred in the Israeli airstrike that targeted a vehicle in Toul.

Fed says 'couple more rate hikes' might help against inflation

  • By Al Mayadeen English
  • Source: Agencies
  • 1 Feb 2023 23:52
4 Min Read

The US Federal Reserve says there need to be at least a few more interest rate hikes before the US government is actually to tackle inflation properly.

  • x
  • US Federal Reserve Chairman Jerome Powell (Getty Images)
    US Federal Reserve Chairman Jerome Powell (Getty Images)

The Federal Reserve expects two further rate increases this year might lead the United States into a "restrictive stance" to combat inflation, chairman Jerome Powell said on Wednesday after the Fed announced its smaller rate increase in around a year as pricing pressures subsided.

The Fed has since March 2022 added 425 basis points to interest rates after they stood at a mere 25 basis points in the wake of the Covid-19 pandemic.

"So, we raised rates to 4.5 percentage points, and we are talking about a couple more rate hikes to get to the level we think is appropriately restrictive," Powell told a news conference.

The Federal Reserve has a modest 2% annual inflation objective. The Consumer Price Index, which measures inflation, increased by 6.5% in the 12 months ending in December, at least three times higher than the central bank's objective.

That was far less than the 9.1% annual rise in June, however, when inflation was at a four-decade high due to government spending on pandemic relief totaling trillions of dollars.

The chairman added that inflation data received over the past three months by the Fed revealed that there was a reduction in the monthly pace of increases. "While recent developments are encouraging, we will need substantially more evidence to be confident that inflation is on a sustained downward path."

The Fed announced a 25-basis point rate hike for February, its smallest in almost a year, as inflation cooled in recent months.

Related News

Brazil warns US against Venezuela move, urges mutual respect

US probes China's alleged violation of Phase One Trade Agreement

This comes after it was revealed that economic growth in the United States has faltered, decreasing to 2.9% in the fourth quarter to cap the year.

The GDP in the United States decreased from the third quarter's 3.2% rate, the Commerce Department said on Thursday as the country is against the ropes when it comes to inflation and rising gas price.

Year on year, economic output grew by 1% in 2022, the Commerce Department added, noting that 2021 saw the output grow by 5.7% and 2019 saw it grow by 2.6%.

Read next: US set for recession next year, economists predict

Additionally, the US Treasury said US national outstanding debt exceeded $31 trillion for the first time in its history, at a time when the US is faced with all-time high inflation coupled with high-interest rates, all of which deepen the economic uncertainty problem that the government, businesses, and people are all facing.

Analysts are projecting that the US Federal Reserve's bids to cool down soaring inflation by further hiking interest rates will lead to broad spending cutbacks and job losses.

It was also expected that the Fed would only raise interest rates by 25 basis points for February in a move away from the previous hikes of 75 basis points decided between June and November.

Initially, the Federal Reserve hoped that it could cool down inflation by slowing economic growth than bringing in an all-out contraction. However, the broader toll from a hike in interest rates could potentially take months to materialize, but in the meantime, the housing sector is suffering as mortgage rates increase after residential investment declined in 2022 and home sales declined 18% year on year.

Meanwhile, final sales to private domestic consumers, an index of consumer and business spending gauging demand, cooled in the second and third quarters of 2022 from previous quarters, according to the Commerce Department.

  • United States
  • Federal reserve
  • US Treasury Department
  • Washington
  • inflation
  • US Treasury
  • Joe Biden
  • Interest rate

Most Read

From previous scenes of the Qassam Brigades targeting an Israeli D9 bulldozer with a Yassin 105 shell, east of Deir al-Balah. (Military Media of the Qassam Brigades)

US knew fatal Rafah blast cause was not Hamas op., says journalist

  • Politics
  • 20 Oct 2025
'Israel’s Digital Iron Dome: Weaponizing the web against Palestine

'Israel’s Digital Iron Dome: Weaponizing the web against Palestine

  • Technology
  • Today
Abu Hamza, the spokesperson for the Al-Quds Brigades, during a speech televised on October 22, 2025 (Al-Quds Brigades Military Media)

Al-Quds Brigades' Abu Hamza mourns leaders, vows continued resistance

  • Politics
  • 22 Oct 2025
US missionary kidnapped in Niger capital, suspected taken toward Mali

US missionary kidnapped in Niger capital, suspected taken toward Mali

  • Africa
  • 23 Oct 2025

Coverage

All
War on Gaza

Read Next

All
Children walk along a sidewalk, Thursday, June 15, 2017 in New York. (AP)
Health

Could AI extend lifespans while fueling despair and joblessness?

milei
Politics

Milei faces sharp drop in approval rating ahead of midterm elections

Israeli settlers set fire to Palestinian vehicles in Deir Dibwan, near Ramallah, during a pre-dawn raid. (social media)
Politics

Israeli settlers torch three Palestinian cars near Ramallah

Binance founder Changpeng Zhao is seen leaving his court sentencing in 2024. (AFP)
Economy

Trump pardons Binance founder Changpeng Zhao

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