Stocks dip after Fed raises key rates another half-point
SAN DIEGO (KUSI) – On Wednesday, Dec. 14, the Federal Reserve announced it will be hiking interest rates an additional half point to reinforce their fight against inflation. The key short term rate for U.S. loans is now 4.25-4.75%.
The Fed has repeatedly increased interest rates in hopes of a “soft landing” as the nation faces a potential recession. This increase marks their fourth rate hike this year.
In September, Federal Reserve Board Chairman Jerome Powell warned that the window to slow the crash has narrowed due to stubborn price pressures caused by the increased cost of fuel, trade complications stemming from the Russian conflict in Eastern Europe, and the lingering impact of the two-year long pandemic.
Powell held a news conference Wednesday to address the adjustment, which marks the sixth interest rate hike this year.
Interest rates in the U.S. remain the highest they’ve been in 15 years.
Meanwhile, California has become a hostile environment for minimum wage earners as rent prices remain among the highest in the country. However, housing prices have begun to decrease after shooting up in the latter half of 2022.