Live updates: Fed hikes interest rates again. Will it slow them down now?

  • The Fed on Wednesday raised interest rates for the sixth time this year.
  • The hike will make it more expensive for consumers and businesses to borrow money.
  • The central bank is boosting rates to curb inflation, which hovers near a 40-year high. But the higher rates risk pushing the economy into a recession.

WASHINGTON – The Federal Reserve plowed ahead with a fourth straight historically large interest rate hike Wednesday — an increase of 0.75 percentage point — in an effort to beat back soaring inflation.

But as the Fed’s monthslong campaign increasingly risks a recession next year, the main question now is – Will it dial back the rate hikes in December or wait until inflation shows clear signs of abating?

At a news conference, Fed Chair Jerome Powell said the Fed could slow the pace of hikes as soon as next month.

“That time is coming and it may come as soon as the next meeting or the one after that,” Powell said.

But he added the Fed isn’t close to pausing its rate hike campaign and needs to boost rates a good bit more to reach a level that’s “sufficiently restrictive” to lower inflation to the Fed’s 2% target. The concern, he said, is that inflation could become “entrenched” in the expectations of consumers and businesses and the Fed must move decisively to head off such a dynamic.

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