The daily business briefing: November 3, 2022

Powell says it's "premature" to consider slowing rate hikes, Russia rejoins the deal to allow Ukraine grain shipments, and more

Jerome Powell
(Image credit: Drew Angerer/Getty Images)

1. Fed hikes interest rates 0.75 points as Powell warns 'soft landing' less likely

The Federal Reserve on Wednesday announced its fourth straight 0.75-percentage-point interest rate hike as it continues working to cool the economy to bring down the highest inflation in decades. The Fed said at the close of a two-day meeting of the Federal Open Market Committee that it is raising its benchmark short-term interest rate target to 3.75 percent to 4 percent, the highest since January 2008. The string of unusually big hikes amount to the central bank's most aggressive moves since the 1980s. Federal Reserve Chair Jerome Powell said after the meeting that it's "premature" to consider slowing rate hikes, the Fed will have to "be more restrictive" to contain stubborn high inflation, "and that narrows the path to a soft landing."

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
Explore More
Harold Maass, The Week US

Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.