07 Nov Fed likely to raise interest rates by 75 basis points
The Wall Street Journal reports that the Federal Reserve has indicated they will raise their benchmark federal funds rate by.75 percentage point this week.
This would mark their fourth consecutive increase this year as they seek to reduce inflation by slowing the economy.
The real question is whether the Fed will raise rates by .75% in December or by .50% in December?
Diane Swonk, Chief Economist at KMPG says, “They have to think about calibration at this meeting. You’re trying to cool down an economy not throw it into a deep freeze.”
Ellen Meade, an economist at Duke University and former senior adviser at the Fed continues. “They do need to slow the pace. Let’s keep in mind, 50 basis points is fast; 75 basis points is really fast.”