U.S. Fed enacts third straight three-quarter-point rate hike amid persistent inflation
2022-09-22 11:13:00

U.S. Federal Reserve Chair Jerome Powell attends a press conference in Washington, D.C., the United States, on July 27, 2022. (Xinhua/Liu Jie)

-- The Fed's latest action came after it raised the benchmark interest rate by three quarters of a point (75 basis points) at its June and July meetings, marking the boldest move in decades.

-- The Fed's newly released quarterly economic projections showed that the median FOMC projection of GDP growth this year is 0.2 percent, a further downgrade from the 1.7 percent projected in March, indicating less confidence about a soft landing amid rising rates.

-- The Fed chief acknowledged that restoring price stability while achieving a relatively modest increase in unemployment and a soft landing would be "very challenging."

WASHINGTON, Sept. 21  -- The U.S. Federal Reserve on Wednesday enacted the third consecutive three-quarter-point rate hike, as it continues to ramp up its fight against surging inflation.

The Federal Open Market Committee (FOMC), the Fed's policy-setting body, decided to raise the target range for the federal funds rate to 3 to 3.25 percent and "anticipates that ongoing increases in the target range will be appropriate," the Fed said in a statement after a two-day policy meeting.

The statement showed that all 12 committee members voted for the decision.

The Fed's latest action came after it raised the benchmark interest rate by three quarters of a point (75 basis points) at both its June and July meetings, marking the boldest move in decades.

"My main message has not changed at all since Jackson Hole," Fed Chair Jerome Powell said at a press conference Wednesday afternoon, referring to his annual policy speech in late August, when he said historical record cautions strongly against "prematurely loosening policy."

"The FOMC is resolved to bring inflation down and we will keep at it until the job is done. So, the way we're thinking about this is the overarching focus of the committee is getting inflation back down to 2 percent," Powell told reporters.

To accomplish that, the U.S. economy will see a period of growth below trend and softening in labor market conditions, he said.

Source: Xinhua Editor: Hiram