Fed is doing everything it can to control inflation - Daily News

Fed raises interest rates by 25 basis points

The Federal Reserve raised interest rates by 25 basis points on July 26, 2023. This is the tenth time the Fed has raised rates in the past 11 meetings. The Fed is raising rates to combat inflation. Inflation in the United States has reached its highest level in 40 years. The Fed is trying to lower inflation by raising rates.

Raising interest rates can slow down the economy. A slower economy can lead to higher unemployment and slower growth. However, the Fed is worried about inflation rising even higher, so it is continuing to raise rates.

The news of the Fed raising rates caused a decline in the markets. The dollar gained value as rates rose. Bonds lost value as rates rose. The stock market lost value as rates rose.

Raising interest rates can slow down the economy, but the Fed is worried about inflation rising even higher, so it is continuing to raise rates.

Jerome Powell:

"The economy is strong and the labor market is very tight. Inflation is very high and we are committed to bringing it down."
"We expect to continue raising interest rates, but we will make decisions at each meeting."
"We are committed to keeping the economy strong and unemployment low."
"We will fight inflation aggressively."
Powell said that the Fed will continue to raise interest rates to bring down inflation and is ready to slow down the economy. Powell also said that he is committed to keeping the economy strong and unemployment low.