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As they had heard the news from the fed and that is because the us federal reserve has warned that more hikes might be coming later this year. michelle fleury reports from outside the federal reserve in washington, dc. since march 2022, interest rates in america have gone up 5%, that s an enormous amount in a short period of time. on wednesday, policymakers inside here all agreed, given its historic rate hiking campaign, now was the time to take a break and give the economy time to adjust to its actions that have pushed up its cost of borrowing for things like mortgages, business loans and credit cards. the decision left the fed s benchmark rate unchanged, in a range between 5% and 5.25%, but for companies and consumers alike, the pain may not be over, as fed chair jerome powell made clear ....
The bbc s north america business correspondent michelle fleury reports from outside the federal reserve in washington dc. since march 2022, interest rates in america have gone up 5%. that s an enormous amount in a short period of time. on wednesday, policymakers inside here all agreed, given its historic rate hiking campaign. now was the time to take a break and give the economy time to adjust to its actions that have pushed up the cost of borrowing for things like mortgages, business loans and credit cards. the decision left the fed s benchmark rate unchanged in a range between 5% and 5.25% percent. but for companies and consumers alike, the pain may not be over. as fed chairjerome powell made clear during his press conference with us, inflation still running well above the bank s 2% target. its job is not yet done. ....
So a couple of smaller banks that have not really been in the limelight, that could face issues, but most banks should be ok for now. many of these problems caused by the central bank raising interest rates and that has led to the current situation, the bank saying it thinks we are at peak interest rates, especially in the us, does that mean the problem starts to go away? i the problem starts to go away? i would say the acute stress goes away because you are right, the high interest rates, this is what caused the value of the securities to come down, and now that we are getting towards the end of this rate hiking campaign, we should see some less stress on the system but that said, the fed is raising rates for our purpose and they want to bring inflation down and to do that, that might lead to higher unemployment ....
Wednesday. it marks the first rate hike since the collapse of two major banks that triggered fears about the stability of the banking sector. you can see this morning, as of right now, the dow is up. joining us now with more, contessa brewer. what more did we learn from the fed chair? they hinted the rate hiking campaign could be nearing an end and likely to see one more hike this year. that is a real change in tone from the last meeting when the fed s statement said ongoing increases in rates would be appropriate. now, powell suggested that rate cuts are not the base case for the rest of 2023. so, we likely won t see a rate cut until next year. meanwhile, as you mentioned, the markets are in the green, pricing in a rate cut by the end of this year. powell says it is too soon to assess what kind of impact the banking crisis will have on the economy. he did acknowledge that he thinks that there is a pathway to a soft landing, and he acknowledged we re likely to see ....
And we know matt that the chairman of the fed a drone, powell spoke just a few moments ago. walk us through what he said. have an issue. well you know, jerome powell really faces this difficult balancing act. i mean, on the one hand, he is trying to make clear that the fed is not satisfied with where inflation is yet right. that s why they raise interest rates today for the ninth straight meeting to levels that we haven t seen since 2007. but on the other hand, powell is also acknowledging the stress in the banking system. these bank failures that even power concedes is actually going to do some of the fed s work for it when it comes to inflation. now. powell during his press conference. he did point to some changes in the statement that do suggest the fed could be nearing an end to this rate hiking campaign and you know, fed officials in their projections. they did pencil in just one more quarter point rate hike. but listening to powell it s clear that there s a lot of ....