Fed rate hikes cool US economy
Washington According to government adviser Cecilia Rouse, the rate hikes by the US Federal Reserve are gradually slowing down the American economy. The Fed’s tighter monetary policy is beginning to cool down the “overheated” US economy and, above all, the job and real estate markets, said Rouse, who chairs the Council of Economic Advisers to the US President’s Office, on Sunday on CNN. President Joe Biden’s administration is working to reduce costs “as much as possible”. However, some of the inflation is due to energy price hikes triggered by the war in Ukraine, she said.
The Federal Reserve (Fed) has been raising interest rates in large strides for months in order to curb inflation. This fell slightly in September to 8.2 percent. In September, the central bank increased the key interest rate by an unusually large three-quarters of a percentage point for the third time in a row. It is thus in a range of 3.00 to 3.25 percent. Another jumbo step is likely to follow in early November.