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Interest rates

Why Fed might not be too upset when stocks fall

by Sabri Ben-Achour
May 4, 2022
All major indices are down for the year. That's probably something the Fed isn't all that mad about.
If the value of people's stock investments go down, they may be less inclined to spend — at least a little.
Spencer Platt/Getty Images
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Federal Reserve raises interest rate by half a percentage point — the largest rate hike since 2000

by Associated Press
May 4, 2022
The Fed intensified its fight against the worst inflation in 40 years on Wednesday and signaled further large rate hikes to come.
Above, Federal Reserve Board Chair Jerome Powell in March. On Wednesday, he confirmed what a lot of economists had been expecting: a half-percentage point interest rate increase.
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Anticipated Fed interest rate hike already being felt

by Sabri Ben-Achour
May 3, 2022
Mortgage rates, for example, probably already have the Fed hikes built in.
The Federal Reserve is planning to raise interest rates this week. If you're trying to take out a mortgage, chances are you're already feeling the effects.
Anna Moneymaker/Getty Images
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Rising interest rates likely to make companies think twice before borrowing

by Justin Ho
May 2, 2022
Many have been on a borrowing spree through the past two years of low rates.
As the Federal Reserve prepares to raise interest rates again, businesses' borrowing habits are set to change.
Spencer Platt/Getty Images
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I've Always Wondered ...

Why does the Federal Reserve raise rates in quarter percentages?

by Janet Nguyen
Apr 29, 2022
The Fed recently hiked rates by 25 basis points, and plans to raise rates several more times this year alone.
A view of the Federal Reserve Board building in Washington, D.C.
SAUL LOEB/AFP via Getty Images
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Japan, bucking the global trend, keeps interest rates low

by Lily Jamali
Apr 28, 2022
While some major central banks tighten monetary policy to fight inflation, the Bank of Japan is taking a very different approach.
The Bank of Japan's headquarters in Tokyo. Unlike many central banks, Japan's is keeping interest rates low, expecting inflation to fade.
Kazuhiro Nogi/AFP via Getty Images
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Can the Fed lower inflation without getting the economy into a recession?

by Kai Ryssdal , Anais Amin and Sean McHenry
Apr 27, 2022
"A look at the record shows that the Fed often stumbles in its efforts to save the day," says Ben White, chief economic correspondent at Politico.
Recessions have followed many of the Federal Reserve's past interest rate hikes.
Samuel Corum/Getty Images
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Just how high will interest rates go?

by Sabri Ben-Achour
Apr 13, 2022
We don't know. But the Taylor principle says rates should increase at least to the level of annual inflation to control rising prices.
Among the Federal Reserve's biggest challenges is quelling consumer expectations of high inflation.
Stefani Reynolds/AFP via Getty Images
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From chocolate to real estate, small businesses are trying to create inflation game plans

by Sean McHenry
Apr 12, 2022
Raise prices? Order more inventory, or less? Business owners describe how they're dealing with dramatic changes in market conditions.
Justin Sullivan/Getty Images
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Why taming inflation can take so long

by Sabri Ben-Achour
Apr 12, 2022
There's a "long and variable lag" between monetary policy starting to control inflation and inflation responding in a substantial way.
Even with the Fed's interest rate hikes, curbing inflation might take a year, or even two.
Anna Moneymaker/Getty Images
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