Fed Announces Smaller Half-Point Hike to Fight Inflation and Latest Summary of Economic Projections
The Federal Reserve announced a smaller 0.50 percentage point rate hike on Dec. 13, as expected, as it begins to dial back its efforts to fight inflation.
The news came as Fed policymakers held their two-day Dec. 13–14 Fed policy meeting.
The central bank had previously issued four straight months of 0.75 percentage point hikes, to the highest level in 15 years.
After the latest hike, the fed funds rate is now at a range of 4.25 to 4.5 percent.
Despite the ease in rate increases, Fed Chair Jerome Powell pledged that the central bank would continue its hawkish stance, with the announcement of further rate hikes next year, as it continues to battle the worst inflation in 40 years….