• About
  • Advertise
  • Contact
  • Careers
  • EEO PUBLIC FILE REPORT
  • FCC Public File
  • FCC Applications
  • Privacy Policy
  • Terms of Use
Monday, August 15, 2022
WTMJ
  • Home
  • News
    • Local
    • National
    • Coronavirus
    • Featured Stories
    • Decision Wisconsin
    • Guest Editorials
  • Weather
    • Closings and Delays
    • Flight Status
    • Interactive Radar
    • Watches and Warnings
  • Traffic
    • Construction Updates
  • Sports
    • Green Bay Packers
      • Green & Gold Podcast
      • Second Screen
    • Milwaukee Brewers
      • Brewers Extra Innings
      • First Pitch
    • Milwaukee Bucks
      • Bucks Talk
      • Bucks Flagship Podcast
    • NCAA
    • Extra Points
  • Shows
    • Wisconsin’s Morning News
    • Steve Scaffidi
    • Jeff Wagner
    • Wisconsin’s Afternoon News
    • WTMJ Nights
    • Wisconsin’s Weekend Morning News
    • WTMJ Conversations
    • Reporter’s Notebook
    • Featured Shows
      • Accunet Mortgage & Realty Show
      • Drake & Associates Retirement Ready Show
      • Every Day Health
      • Fix It Show
      • Hired! The GKB Recruitment Show
      • Money Talk, The Annex Wealth Management Show
      • Travel Wisconsin
  • Podcasts
    • The Steve Scaffidi Show
    • Jeff Wagner Podcast
    • WTMJ Extra
    • WTMJ Nights
    • Green & Gold Podcast
    • Brewers Extra Innings Podcast
    • First Pitch
    • Bucks Flagship Podcast
  • Features
    • 2022 Wisconsin State Fair & Cream Puff-a-Palooza
    • 2022 WTMJ Classic & WTMJ Cares
    • Annex Wealth Management – WEBINAR – Understand Your WRS Pension Potential
    • Wagner’s Home Improvement Showcase
    • Every Day Health
    • Gene Mueller Come Along Trip to Paris and Normandy
    • Discover Greece and Its Islands with John Mercure and Collette
    • Spotlight on San Antonio Holiday with John Mercure and Collette
  • Contests
LISTEN LIVE
No Result
View All Result
WTMJ
  • Home
  • News
    • Local
    • National
    • Coronavirus
    • Featured Stories
    • Decision Wisconsin
    • Guest Editorials
  • Weather
    • Closings and Delays
    • Flight Status
    • Interactive Radar
    • Watches and Warnings
  • Traffic
    • Construction Updates
  • Sports
    • Green Bay Packers
      • Green & Gold Podcast
      • Second Screen
    • Milwaukee Brewers
      • Brewers Extra Innings
      • First Pitch
    • Milwaukee Bucks
      • Bucks Talk
      • Bucks Flagship Podcast
    • NCAA
    • Extra Points
  • Shows
    • Wisconsin’s Morning News
    • Steve Scaffidi
    • Jeff Wagner
    • Wisconsin’s Afternoon News
    • WTMJ Nights
    • Wisconsin’s Weekend Morning News
    • WTMJ Conversations
    • Reporter’s Notebook
    • Featured Shows
      • Accunet Mortgage & Realty Show
      • Drake & Associates Retirement Ready Show
      • Every Day Health
      • Fix It Show
      • Hired! The GKB Recruitment Show
      • Money Talk, The Annex Wealth Management Show
      • Travel Wisconsin
  • Podcasts
    • The Steve Scaffidi Show
    • Jeff Wagner Podcast
    • WTMJ Extra
    • WTMJ Nights
    • Green & Gold Podcast
    • Brewers Extra Innings Podcast
    • First Pitch
    • Bucks Flagship Podcast
  • Features
    • 2022 Wisconsin State Fair & Cream Puff-a-Palooza
    • 2022 WTMJ Classic & WTMJ Cares
    • Annex Wealth Management – WEBINAR – Understand Your WRS Pension Potential
    • Wagner’s Home Improvement Showcase
    • Every Day Health
    • Gene Mueller Come Along Trip to Paris and Normandy
    • Discover Greece and Its Islands with John Mercure and Collette
    • Spotlight on San Antonio Holiday with John Mercure and Collette
  • Contests
LISTEN LIVE
No Result
View All Result
WTMJ
No Result
View All Result

Fed: Sharply higher rates may be needed to quell inflation

AP News by AP News
July 6, 2022
in AP National, AP News, National
Share on FacebookShare on TwitterEmail

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Federal Reserve officials were concerned at their meeting last month that consumers were starting to anticipate higher inflation, and they signaled that much higher interest rates could be needed to restrain it.

The policymakers also acknowledged, in minutes from their June 14-15 meeting released Wednesday, that their rate hikes could weaken the economy. But they suggested that such steps were necessary to slow price increases back to the Fed’s 2% annual target.

The officials agreed that the central bank needed to raise its benchmark interest rate to “restrictive” levels that would slow the economy’s growth and “recognized that an even more restrictive stance could be appropriate” if inflation persisted. After last month’s meeting, the Fed raised its rate by three-quarters of a point to a range of 1.5% to 1.75% — the biggest single increase in nearly three decades — and signaled that further large hikes would likely be needed.

The Fed has been ramping up its drive to tighten credit and slow growth with inflation having reached a four-decade high of 8.6%, spreading to more areas of the economy. Americans are also starting to expect high inflation to last longer than they had before — a sentiment could embed an inflationary psychology and make it harder to bring inflation back to the Fed’s 2% target.

With midterm elections nearing, high inflation has surged to the top of Americans’ concerns, posing a threat to President Joe Biden and Democrats in Congress.

At a news conference after last month’s Fed meeting, Chair Jerome Powell suggested that a rate hike of either one-half or three-quarters of a point was likely when the policymakers next meet late this month. The minutes released Wednesday confirmed that other officials agreed that such a hike would “likely be appropriate.” A rate hike of either size would exceed the quarter-point increase that the Fed has typically carried out.

Last month, the Fed released projections that showed the officials expect to raise their benchmark rate to 3.4% by the end of this year. At that level, the Fed’s key rate would no longer stimulate growth and could weaken the economy.

At the time of last month’s meeting, the policymakers said the economy appeared to be expanding in the April-June quarter, with consumer spending “remaining strong.” Since then, though, the economy has shown signs of slowing, with consumer spending falling in May, after adjusting for inflation, for the first time this year. Home sales are plunging as mortgage rates have jumped, accelerated by the Fed’s rate increases.

The signs of economic sluggishness have intensified fears that high prices and rising interest rates could send the economy into a recession late this year or next year. Such concern has further complicated the Fed’s policymaking because a recession would normally lead it to cut rates to stimulate growth.

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

Previous Post

AP Top Entertainment News at 2:22 p.m. EDT

Next Post

NASCAR penalizes Gragson for intentional Road America crash

AP News

AP News

Stay Connected

  • 22.3k Followers
  • 1k Follower
  • 643 Subscribers

Most Popular

09-08-20 Decision Wisconsin with Gene Mueller and Mike Gousha

DECISION WISCONSIN LIVE: Results & Analysis from tonight’s partisan primary election

August 9, 2022
New MU Law School poll shows Biden maintaining lead over Trump in Wisconsin

2022 Wisconsin Partisan Primary guide

August 9, 2022
Where did all the workers go? Labor shortage explained

Where did all the workers go? Labor shortage explained

June 15, 2022
Three men arrested, accused of building and selling guns in Racine

Three men arrested, accused of building and selling guns in Racine

August 9, 2022
Michels wins Republican primary, will face Gov. Tony Evers

Michels wins Republican primary, will face Gov. Tony Evers

August 10, 2022
WTMJ

For more than 90 years, WTMJ-AM has been "Wisconsin's Radio Station".

Follow Us

Home

News

Weather

Traffic

Sports

Shows

Podcasts

Features

Careers

Contests

Recent News

Widow of man who died at WI vet’s home sues state, others

August 15, 2022

So-called ‘Don’t Say Gay’ law confuses some Florida schools

August 15, 2022
  • About
  • Advertise
  • Contact
  • Careers
  • EEO PUBLIC FILE REPORT
  • FCC Public File
  • FCC Applications
  • Privacy Policy
  • Terms of Use

© 2022 Good Karma Brands Milwaukee, LLC.

  • LISTEN LIVE
  • Home
  • News
    • News
    • Local News
    • Coronavirus
    • Decision Wisconsin
  • Weather
    • Weather
    • Watches and Warnings
    • Closings and Delays
    • Flight Status
  • Traffic
  • Construction Updates
  • Sports
    • Sports
    • Green Bay Packers
    • Milwaukee Brewers
    • Milwaukee Bucks
  • Shows
    • Shows
    • Wisconsin’s Morning News
    • Steve Scaffidi
    • Jeff Wagner
    • Wisconsin’s Afternoon News
    • WTMJ Nights
    • WTMJ Conversations
    • Featured Shows
  • Podcasts
  • Features
    • Features
    • Good Karma Give Back
    • WTMJ Roundtable
  • Contests
  • Alexa
No Result
View All Result

© 2022 Good Karma Brands Milwaukee, LLC.