The U.S. central bank raised interest rates by 0.25 percent. Here’s what it means for families, businesses and the economy.
The Fed’s move on Wednesday attempts to address soaring prices by making it more costly to borrow money. It raised what is know as the federal funds rate, the interest rate banks use to lend money to each other overnight, which has been near zero since early in the pandemic when the economy plunged.
At the same time, the economy is booming. Unemployment, at 3.8 percent, is nearing pre-pandemic lows, clearing the way for the Fed to dial things back a notch.“It is appropriate for us to move ahead,” Fed Chair Jerome H. Powell told lawmakers earlier in March. “Inflation is high, too high. The committee is committed to using our tools to bring it back down.”
“Once interest rates go up, some businesses are going to start saying, ‘Is it worth it? Maybe it doesn’t make sense to borrow anymore,'” said Claudia Sahm, a senior fellow at the Jain Family Institute and former Fed economist. “That filters down to the labor market, because when businesses don’t invest in new stores or factories, they don’t need as many workers.”A pullback in hiring would be a notable turn for the labor market, which has added a record 7 million jobs in the past year.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Honey Traps, Child Porn, Violence: Feds Bust Chinese Plot to Destroy NY PolThe FBI says the Chinese government tapped a retired state agent to dig up—or manufacture—a scandal that would take down an activist running for Congress on Long Island.
Leer más »
Ex-Chicago alderman Patrick Daley Thompson asks for new trial, says feds 'littered' arguments with innuendosPatrick Daley Thompson’s lawyers are seeking a new trial or acquittal for the former City Council member — despite a jury’s verdict last month — in part by alleging that prosecutors made inappropriate arguments at the close of Thompson’s federal tax trial.
Leer más »
Man admits driving getaway car in series of armed robberies in N.J. and Pa., feds sayDuring one robbery, in Union County, a robber fired a gun at passersby, authorities say.
Leer más »
Psych-folk project the Singleman Affair debuts album number four at Constellation - Chicago ReaderLocal DIY space the VCR stays on-brand with a two-hour live compilation that's also available as a VHS cassette. Artists include Girl K, Sol Patches, and Kevin & Hell, and after a CAN TV screening in April | JR1Nelson & imLeor
Leer más »
Somalia's worst drought in four decades means millions need aidIt has not rained on Habiba Maow Iman's farm in southern Somalia for two years. Her animals are dead; her crops failed.
Leer más »
Five Dark Horses That Could Crash the Men’s Final FourThe last time the men’s Final Four didn’t feature a team seeded No. 4 or lower was in 2009. mollyjgeary picks out this year’s dark-horse candidates
Leer más »