Federal Reserve likely to signal higher rate hikes ahead

The Fed is expected at its latest meeting to raise its key short-term rate by a substantial three-quarters of a point for the third consecutive time. Another hike that large would lift its benchmark rate—which affects many consumer and business loans—to a range of 3% to 3.25%, the highest level in 14 years.

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Fed hoping higher rates won’t mean deep U.S. recession

The last time the Federal Reserve faced inflation as high as it is now, in the early 1980s, it jacked up interest rates to double-digit levels—and in the process caused a deep recession and sharply higher unemployment. On Thursday, Chair Jerome Powell suggested that this time, the Fed won’t have to go nearly as far.

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