Key Points
- The Federal Reserve began its two-day meeting Tuesday, and economists expect the central bank to announce a third consecutive three-quarter point rate hike.
- “This is really moving into restrictive monetary policy territory. We will be moving into no man’s land,” said one economist. “We actually haven’t tightened policy to fight inflation since the early 1980s.”
- Any surprises may come in the Fed’s quarterly projections on inflation, the economy and interest rates.
Update: 21SEP2022: 2:16 PM
- The Federal Reserve approved its third consecutive interest-rate rise of 0.75 percentage point and signaled additional large increases were likely at coming meetings as it combats inflation that remains near a 40-year high.
- The decision Wednesday—unanimously supported by the Fed’s 12-member rate-setting committee—will lift its benchmark federal-funds rate to a range between 3% and 3.25%, a level last seen in early 2008.
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