Fed hikes rates – Brownfield Ag News

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The Fed is raising interest rates

The US Federal Reserve hiked interest rates by half a point on Wednesday, the largest hike since 2000.

Fed Chair Jerome Powell says the group’s goal is to bring inflation down to around 2 percent.

“In the 12 months to March, total PCE (consumer prices for goods and services) rose 6.6 percent,” Powell said. “Excluding the volatile food and energy categories, core PCE prices rose 5.2 percent.”

He said because the rate hike was a demand-side adjustment…

“We can’t — really — affect oil prices or other commodity prices or food prices and things like that,” he said.

Powell said Russia’s invasion of Ukraine and recent COVID-related lockdowns in China have increased inflation, particularly in food and energy costs.

“People suffer almost more from nutritional and energy shocks, although they don’t tell us much about the future path,” he said. “So they will weigh on the healing process of the global supply chain, which will also affect overall inflation.”

Powell hinted that more rate hikes would come if inflationary pressures remain elevated.

Powell made the comments on a Federal Reserve livestream on Wednesday.

https://brownfieldagnews.com/news/fed-raises-rates/ Fed hikes rates – Brownfield Ag News

Callan Tansill

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