The Federal Reserve on Wednesday approved a fourth consecutive 75-basis-point interest rate increase. Fed Chairman Jerome Powell commented that the Fed’s window for a soft landing for the economy is narrowing, emphasizing that the central bank will continue to battle rising broad price inflation until it can declare victory and reduce inflation to its target of 2%.
The hike brings the central bank’s benchmark lending rate to a range of 3.75%- 4%, the highest since January 2008. However, wages and salaries rose by 1.2% in the third quarter, down from 1.6% in the prior quarter, according to the Employment Cost Index. This could slightly reduce the inflationary pressure.
