Federal Reserve hikes rates again, but hints at pullback

From Transport Topics.

The Federal Reserve pumped up its benchmark interest rate on Nov. 2 by three-quarters of a point for a fourth straight time but hinted that it could soon reduce the size of its rate hikes.

The Fed’s move raised its key short-term rate to a range of 3.75% to 4%, its highest level in 15 years. It was the central bank’s sixth rate hike this year — a streak that has made mortgages and other consumer and business loans increasingly expensive and heightened the risk of a recession.

But in a statement, the Fed suggested that it could soon shift to a more deliberate pace of rate increases. It said that in coming months it would consider the cumulative impact of its large rate hikes on the economy. It noted that its rate hikes take time to fully affect growth and inflation.

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