Here’s What The Federal Reserve’s Recent Rate Hike Means For The Economy

Here’s What The Federal Reserve’s Recent Rate Hike Means For The Economy


The Federal Reserve raised the federal funds rate 0.75% on Wednesday afternoon, sending the Dow Jones falling more than 500 points.

As inflation remains elevated and core inflation — the price level increase for all items except for food and energy — continues to rise, the central bank’s decision signals that officials are prioritizing a cooldown in cost pressures, even with potential declines in economic activity. Officials also announced rate hikes of 0.75% in June and July.

The Federal Reserve cited robust employment figures as a rationale for the rate hike — although joblessness could see substantial increases under the aggressive rollback of monetary stimulus, Kace Capital Advisors CEO Kenny Polcari said in an interview with The Daily Wire.

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“Expect the unemployment rate to go from 3.7% —

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