Why a Federal Reserve rate hike could be a ‘rare win’ for your retirement money
There may be better savings yields, but beware rising credit-card rates
Washington — The Federal Reserve is widely anticipated to increase its benchmark interest rate by a quarter-point on Wednesday, for the first time in three years, in an effort to combat persistent high inflation. This move would contrast with President Donald Trump's advocacy for a rate reduction. It remains uncertain if the Fed will proceed with the hike, as Chair Kevin Warsh has not provided clear indications of future actions, unlike his predecessors.
However, most analysts and economists are confident in the hike following Warsh's speech at the Fed's annual conference in Jackson Hole, Wyoming, two weeks ago. During that address, Warsh contended that the Fed had not yet succeeded in its goal of curbing inflation. A rate increase would inject another significant change into a volatile period for the economy and financial markets.
Until March, the Fed had projected it would lower its rate multiple times within the year. However, the ongoing Iran conflict and its impact on oil and gas prices have led to sharp price hikes, making it probable that inflation will stay above the Fed's 2 percent target for an extended duration. "I do not see the end of the Iran war,"
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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