Fed Approves , Third-Straight , Massive Rate Hike.<br />On September 21, the Federal Reserve <br />made history by approving a third <br />consecutive 75-basis-point hike.<br />CNN reports that the aggressive move is meant <br />to tackle out-of-control inflation that has <br />been decimating America's economy.<br />The massive hike takes the central <br />bank's lending rate to a new <br />target range of 3% to 3.25%.<br />According to CNN, that's the highest <br />the federal funds rate has been since <br />the worldwide financial crisis of 2008.<br />The decision is likely to bring economic <br />hardship for millions of Americans, <br />driving the cost of borrowing higher.<br />While higher interest rates, slower growth, <br />and softer labor market conditions will bring <br />down inflation, they will also bring some <br />pain to households and businesses, Jerome Powell, Federal Reserve Chairman, via CNN.<br />While higher interest rates, slower growth, <br />and softer labor market conditions will bring <br />down inflation, they will also bring some <br />pain to households and businesses, Jerome Powell, Federal Reserve Chairman, via CNN.<br />These are the unfortunate costs of reducing <br />inflation. But a failure to restore price <br />stability would mean far greater pain, Jerome Powell, Federal Reserve Chairman, via CNN.<br />According to Moody’s Analytics, consumers are now spending about $460 more per month on groceries <br />than at the same time in 2021.<br />According to Moody’s Analytics, consumers are now spending about $460 more per month on groceries <br />than at the same time in 2021.<br />On September 21, the Fed released its updated <br />Summary of Economic Projections which forecast <br />interest rates will remain high for years to come.<br />On September 21, the Fed released its updated <br />Summary of Economic Projections which forecast <br />interest rates will remain high for years to come.<br />The data also showed that Core Personal Consumption <br />Expenditures, the Fed’s favored measure of rising prices, <br />is expected to hit 4.5% this year and 3.1% in 2023.<br />CNN reports that the news comes amid the growing <br />threat of a hard landing, where tightening <br />monetary policy triggers a recession
