Stock Market Dips May Be on Horizon as Feds Look to Interest Rate Hikes to Curb Inflation
- Date: 12-Jan-2022
- Source: Newsweek
- Sector:Economy
- Country:Middle East
Stock Market Dips May Be on Horizon as Feds Look to Interest Rate Hikes to Curb Inflation
The United States Senate Banking Committee held a hearing today where lawmakers spoke with Federal Reserve Chair Jerome Powell about what actions he might take to bolster America's economy ahead of his expected re-nomination for a second term as chair of the country's central bank.
During this hearing, senators focused on what Powell would do to address an inflation rate that jumped by a historic 6.8 percent over the past calendar year. To this, the chair provided the committee with the following statement:
"I would expect that this year, 2022, will be a year in which we take steps toward normalization," Powell said. "That would involve raising the federal funds rate. That would involve ending asset purchases in March, and perhaps, later this year, depending on the run of things, we would also see ourselves beginning to allow the balance sheet to shrink."
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