WASHINGTON, D.C. – The Federal Reserve raised interest rates Wednesday with a half-point hike.
But, the goal of such increases is to lower inflation, and Tuesday’s inflation report shows signs of relief.
Tuesday’s Consumer Price Index report shows November’s inflation rate was 7.3, a low not seen since last December.
Fed hikes mean people have to pay more interest on things like credit cards and mortgages. But, the point of them is to lower prices.
Mark Hamrick works as a senior economic analyst for Bankrate.com. He said, “If this relieves us of the historically high and damaging inflation, and we have to make a slight tradeoff for that. I think that’s a trade that many Americans would make.”
Labor Secretary Marty Walsh said, “One of my main focuses as secretary of labor will be making sure that we have job training, workforce development and apprenticeship opportunities for new jobs we’re creating but for some of these other jobs that are happening in the united states right now that are having a hard time finding people.”
The Fed wants to pull off a so-called “soft landing.” That would involve reducing inflation without causing a recession.
Hamrick said, “I think there’s still a chance. You know, keep hope alive.”
© 2024 KOBI-TV NBC5. All rights reserved unless otherwise stated.