On Wednesday, the Federal Reserve raised interest rates by another 0.75 percent. This is the sixth increase by the Fed this year as inflation continues to take its grip on America. But sadly, this wasn’t the biggest news from Chairman Jerome Powell’s press conference. Powell stated that he no longer thought the economy would have a soft land, explaining, “The inflation picture has become more and more challenging over the course of this year. That means we have to have policy more restrictive, and that narrows the path to a soft landing.”
This is the fourth straight month the Fed has raised rates 0.75 percent. Many Americans hoped inflation was on its way down. Powell did not provide a positive update here either, saying “there’s no sense that inflation is coming down.”
The stock market sank in response to the news and the Dow ended the day down 500 points. The market rose strongly in October, believing the Fed was finished with their historic rate hikes, but today their hopes were dashed.