Fed hikes again by 0.75%, hints at policy change.
By The Exchange Team
The Fed approved a 4th successive 3-quarter point interest rate hike and signaled a possible change in monetary policy to bring down inflation.
The central bank raised its short-term borrowing rate by 0.75 percentage point to 3.75%-4%, the highest level since January 2008.
This is the most aggressive monetary policy tightening since the early 1980s, when inflation was high.
Along with the rate hike, markets wanted to hear that this could be the last 0.75-point move.
The Fed will consider the cumulative tightening of monetary policy when determining future hikes, the statement said.
The time lags between monetary policy and economic activity and inflation, as well as economic and financial developments.
Economists hope this is the "step-down" in policy that might see a half-point rate hike in December and a few smaller hikes in 2023.