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Interest Rate Hike: Why The Federal Reserve Is Increasing The Rate To Fight Inflation | Forbes
Posted
May 5, 2022
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May 5, 2022
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1:35Now PlayingThe stock market surged higher on Wednesday after the Federal Reserve raised interest rates by 0.5% in a move widely-anticipated by investors, as the central bank continues on its path of aggressive monetary policy tightening in a bid to combat surging inflation.
Traders expect the Federal Reserve to continue aggressively raising interest rates in the next few months, and with the federal funds rate now at a range of 0.75% to 1%, current market expectations are for the rate to reach 3% by the end of 2022.
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