OAN Newsroom Contributor Annyatama Bhowmik
UPDATED 1:30 PM PT – Wednesday, December 14, 2022
The Federal Reserve has increased the federal funds rate by 50 basis points, marking the highest increase since 2007. Its benchmark was raised from a 4.25% to a 4.50% target range.
On Wednesday, the Federal Reserve slowed its campaign to cool the economy by raising its benchmark interest rate by 50 basis points. This increase comes amid early indications that persistently high inflation is finally beginning to decline.
This decision, made during the two-day Federal Open Industry Committee meeting, is good news for the housing market since it can cause mortgage rates to drop. The housing rate has suffered recently due to persistently high property prices, which in turn has made purchasing difficult for prospective buyers.
The Fed began its campaign to combat rising inflation in March by raising the benchmark rate by 25 basis points. Following that rate increase, there were four consecutive increases in the months of June, July, September and November.
The Federal Open Market Committee said that future hikes should be expected.