Fed Goes Big Again With Third-Straight Three-Quarter-Point Rate Hike | CNN Business


Fear & Greed Index

Something isn’t loading properly. Please check back later.

Markets and Investing

After making history by approving a third consecutive 75-basis-point hike, Federal Reserve Chairman Jerome Powell held a press conference on the plan to get inflation down to 2%.

” data-duration=”00:40″ data-editable=”settings” data-headline=”Powell says job market will have to suffer for inflation to fall” data-index=”idx-0″ data-show-name=”” data-show-url=”” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_1830[email protected]published” data-video-id=”business/2022/09/21/powell-inflation-job-market-rate-hike-vpx.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_1830[email protected]published”>

Federal Reserve Board Chair Jerome Powell speaks during a news conference following a two-day meeting of the Federal Open Market Committee (FOMC) in Washington, U.S., July 27, 2022.

Now playing

Powell says job market will have to suffer for inflation to fall

It’s no secret the market is in turmoil right now with some fearing equities are headed for new lows. David Bailin, chief investment officer at Citi Global Wealth Investments, gives three pieces of advice for smart investors.

” data-duration=”00:57″ data-editable=”settings” data-headline=”Investor shares 3 things you should do right now in this market” data-index=”idx-1″ data-show-name=”” data-show-url=”” data-source=”CNN Business” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_7ef426c92057763d013f1ce94b13cbb2″ data-video-id=”business/2022/09/21/3-investing-tips-for-market-turmoil-david-bailin-orig.cnn-business” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_7ef426c92057763d013f1ce94b13cbb2″>

3 investing tips for market turmoil david bailin orig_00003402.png

Now playing

Investor shares 3 things you should do right now in this market

Home prices remain high despite record inflation and high mortgage rates. Danielle Hale, chief economist at realtor.com, explains what home sellers can expect going forward and how buyers might be able to get a lower price.

” data-duration=”02:28″ data-editable=”settings” data-headline=”Buying or selling a home? Hear what this economist has to say about prices” data-index=”idx-2″ data-show-name=”” data-show-url=”” data-source=”CNN Business” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_fb8593608b89d8f627b1db7ead4d3d03″ data-video-id=”business/2022/09/21/home-prices-forecast-realtor-danielle-hale-orig.cnn-business” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_fb8593608b89d8f627b1db7ead4d3d03″>

MIAMI, FLORIDA - JUNE 21: A 'for sale' sign hangs in front of a home on June 21, 2022 in Miami, Florida. (Photo by Joe Raedle/Getty Images)

Now playing

Buying or selling a home? Hear what this economist has to say about prices

CNN’s Chief Business Correspondent Christine Romans explains what corporate America can tell us about the health of the US economy going forward.

” data-duration=”01:16″ data-editable=”settings” data-headline=”Is a recession coming? Look to corporate earnings” data-index=”idx-3″ data-show-name=”” data-show-url=”” data-source=”CNN Business” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_bebd966ad5b157786ff278793b72890e” data-video-id=”business/2022/09/20/recession-corporate-earnings-mc-orig.cnn-business” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_bebd966ad5b157786ff278793b72890e”>

DULLES, VA - MAY 25: Pallets of baby formula are unloaded from a FedEx cargo plane upon arrival at Dulles International Airport on May 25, 2022 in Dulles, Virginia. More than 100 pallets of infant formula traveled from Ramstein Air Base in Germany to Washington Dulles International Airport. The mission is being executed to address an infant formula shortage caused by the closure of the largest U.S. formula manufacturing plant due to safety and contamination issues. (Photo by Drew Angerer/Getty Images)

Now playing

Is a recession coming? Look to corporate earnings

Can the Twitter whistleblower save Elon Musk from buying Twitter for $44B? Dan Ives, senior director at Wedbush Securities, explains 4 possible scenarios for how Twitter and Musk’s legal battle could play out in court.

” data-duration=”01:40″ data-editable=”settings” data-headline=”4 ways Twitter and Musk court battle could end, explained” data-index=”idx-4″ data-show-name=”” data-show-url=”” data-source=”CNN Business” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_2e5bc78668d9a5d703de2bcb080d85f6″ data-video-id=”business/2022/09/14/twitter-elon-musk-4-court-case-scenarios-orig.cnn-business” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_2e5bc78668d9a5d703de2bcb080d85f6″>

twitter elon musk 4 court case scenarios orig_00000701.png

Now playing

4 ways Twitter and Musk court battle could end, explained

David Rubenstein, author of “How to Invest: Masters on the Craft” tells CNN’s Matt Egan how the best investors approach their portfolios during times of volatility.

” data-duration=”02:28″ data-editable=”settings” data-headline=”Billionaire businessman explains how to invest like the best” data-index=”idx-5″ data-show-name=”” data-show-url=”” data-source=”CNN Business” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_36738c56b688575e740604ede0aa875d” data-video-id=”business/2022/09/02/david-rubenstein-investing-advice-jg-orig.cnn-business” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_36738c56b688575e740604ede0aa875d”>

David Rubenstein, author of

Now playing

Billionaire businessman explains how to invest like the best

B. Riley Financial’s Chief Market Strategist Art Hogan tells CNN’s Alison Kosik that a recession in 2023 is likely, but it’s still possible for the Federal Reserve to pull off a “soft landing.”

” data-duration=”01:41″ data-editable=”settings” data-headline=”Strategist: Here’s why the Fed could still pull off a ‘soft landing'” data-index=”idx-6″ data-show-name=”” data-show-url=”” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_81f15e66174a7ae7e3fff3fa5b28e276″ data-video-id=”business/2022/09/07/markets-now-art-hogan-federal-reserve-soft-landing-recession.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_81f15e66174a7ae7e3fff3fa5b28e276″>

markets now art hogan federal reserve soft landing recession _00001730.png

Now playing

Strategist: Here’s why the Fed could still pull off a ‘soft landing’

Klarna CEO Sebastian Siemiatkowski tells CNN’s Alison Kosik how the company is responding to a slashed valuation and why Apple entering the market is confirmation “buy now, pay later” is a good business.

” data-duration=”02:19″ data-editable=”settings” data-headline=”Klarna CEO on ‘buy now, pay later’ competition from Apple” data-index=”idx-7″ data-show-name=”” data-show-url=”” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_3c30bd7fcd468c30838aef72bed1055a” data-video-id=”business/2022/08/31/klarna-sebastian-siemiatkowski-buy-now-pay-later-apple-orig.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_3c30bd7fcd468c30838aef72bed1055a”>

klarna sebastian siemiatkowski buy now pay later apple orig_00014914.png

Now playing

Klarna CEO on ‘buy now, pay later’ competition from Apple

The stock market’s summer rally has run into trouble recently. Despite the rumbles, Anastasia Amoroso, Chief Investment Strategist at iCapital, explains why long-term investors should buy stocks especially when the market feels terrible.

” data-duration=”01:46″ data-editable=”settings” data-headline=”Strategist explains why you should ‘buy stocks when it feels terrible'” data-index=”idx-8″ data-show-name=”” data-show-url=”” data-source=”CNN Business” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_bc082d8138c8d86929499e177ae1586e” data-video-id=”business/2022/08/24/stock-buying-strategy-risk-reward-scenario-anastasia-amoroso-orig.cnn-business” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_bc082d8138c8d86929499e177ae1586e”>

stock buying strategy risk reward scenario anastasia amoroso orig_00005912.png

Now playing

Strategist explains why you should ‘buy stocks when it feels terrible’

Subway sandwiches could soon be on your list of monthly subscription services. Subway CEO John Chidsey explains to CNN’s Alison Kosik how the subscription program will work and what consumers can expect from food prices.

” data-duration=”00:59″ data-editable=”settings” data-headline=”Your next subscription could be to Subway. Its CEO explains how it’ll work” data-index=”idx-9″ data-show-name=”” data-show-url=”” data-source=”CNN Business” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_dce254a0279bf90dbf73360d6f07e4b9″ data-video-id=”business/2022/08/24/subway-subscription-pass-ceo-interview-orig.cnn-business” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_dce254a0279bf90dbf73360d6f07e4b9″>

subway subscription pass ceo interview orig_00002428.png

Now playing

Your next subscription could be to Subway. Its CEO explains how it’ll work

Cowen’s Senior Retail Analyst Oliver Chen breaks down why Walmart beat quarterly earnings expectations whereas Target missed.

” data-duration=”02:19″ data-editable=”settings” data-headline=”Walmart vs. Target: A tale of two retail results” data-index=”idx-10″ data-show-name=”” data-show-url=”” data-source=”CNN Business” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_7ff9435f5d922c9bc5c42b3dfdd1a9bd” data-video-id=”business/2022/08/17/target-walmart-quarterly-earning-results-markets-now-orig.cnn-business” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_7ff9435f5d922c9bc5c42b3dfdd1a9bd”>

target walmart markets now

CNN Business

Now playing

Walmart vs. Target: A tale of two retail results

Inflation may be slowing, but Dana Peterson, Chief Economist at The Conference Board, says the Federal Reserve may still raise rates aggressively. Here’s why.

” data-duration=”02:31″ data-editable=”settings” data-headline=”Economist: Recent inflation data may not change Fed’s plan” data-index=”idx-11″ data-show-name=”” data-show-url=”” data-source=”CNN” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_c4750dbc5c0a02356fe9a5a7d2869c5e” data-video-id=”business/2022/08/10/shallow-recession.cnn” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_c4750dbc5c0a02356fe9a5a7d2869c5e”>

dana peterson markets now

Now playing

Economist: Recent inflation data may not change Fed’s plan

During the pandemic, Netflix’s stock skyrocketed off of superb subscriber growth. Now that the market cap has fallen along with subscriptions, is Wall Street to blame for never quite understanding what it was investing in?

” data-duration=”03:09″ data-editable=”settings” data-headline=”Does Wall Street understand Netflix?” data-index=”idx-12″ data-show-name=”” data-show-url=”” data-source=”CNN Business” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_9f17875ab082df1d4eb99c238358186c” data-video-id=”business/2022/08/04/netflix-wall-street-mc-orig.cnn-business” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_9f17875ab082df1d4eb99c238358186c”>

This picture taken on September 11, 2014 shows the on-demand internet streaming media provider, Netflix, on a laptop screen in Stockholm. The online streaming website Netflix will be launched in Germany, Austria, Switzerland, Belgium and Luxembourg mid-September. It is already operating in Scandinavian countries. AFP PHOTO/JONATHAN NACKSTRAND        (Photo credit should read JONATHAN NACKSTRAND/AFP via Getty Images)

Now playing

Does Wall Street understand Netflix?

Yardeni Research President Ed Yardeni explains why he is predicting the US bear market may already be over.

” data-duration=”02:13″ data-editable=”settings” data-headline=”Is the worst already over for stock markets? This strategist thinks so” data-index=”idx-13″ data-show-name=”” data-show-url=”” data-source=”CNN Business” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_6d16610a2a8e86a015579563fa51ebb2″ data-video-id=”business/2022/08/03/yardeni-research-market-prediction-bear-market-recession-markets-now.cnn-business” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_6d16610a2a8e86a015579563fa51ebb2″>

MN Market prediction

CNN Business

Now playing

Is the worst already over for stock markets? This strategist thinks so

Frontier CEO Barry Biffle explains why JetBlue’s proposed purchase of Spirit Airlines could actually be an opportunity for Frontier to become “the low cost carrier” for US travelers.

” data-duration=”01:28″ data-editable=”settings” data-headline=”Frontier CEO sees growth opportunity after failed merger with Spirit” data-index=”idx-14″ data-show-name=”” data-show-url=”” data-source=”CNN Business” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_1ae9e8e2dd8a8a72b59b98196c7c352d” data-video-id=”business/2022/08/03/frontier-merger-spirit-growth-opportunity-markets-now.cnn-business” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_1ae9e8e2dd8a8a72b59b98196c7c352d”>

Markets Now Frontier

CNN Business

Now playing

Frontier CEO sees growth opportunity after failed merger with Spirit

Rick Rieder, BlackRock’s Chief Investment Officer of Global Fixed Income, gives his predictions on how the Federal Reserve will approach interest rates in coming months.

” data-duration=”02:29″ data-editable=”settings” data-headline=”BlackRock investment expert: Fed will start slowing interest rate hikes” data-index=”idx-15″ data-show-name=”” data-show-url=”” data-source=”CNN Business” data-uri=”archive.cms.cnn.com/_components/video-resource/instances/h_4dd069d5f234aaf00e82ff063833b727″ data-video-id=”business/2022/07/27/blackrock-federal-reserve-rate-hike-markets-now.cnn-business” data-video-instance=”archive.cms.cnn.com/_components/video-resource/instances/h_4dd069d5f234aaf00e82ff063833b727″>

blackrock federal reserve rate hike markets now_00000000.png

Now playing

BlackRock investment expert: Fed will start slowing interest rate hikes

Washington, DC CNN Business  — 

The Federal Reserve made history on Wednesday, approving a third consecutive 75-basis-point hike in an aggressive move to tackle the white-hot inflation that has been plaguing the US economy.

The supersized hike, which was unfathomable by markets just months ago, takes the central bank’s benchmark lending rate to a new target range of 3%-3.25%. That’s the highest the fed funds rate has been since the global financial crisis in 2008.

Wednesday’s decision marks the Fed’s toughest policy move since the 1980s to fight inflation. It will also likely cause economic pain for millions of American businesses and households by pushing up the cost of borrowing for things like homes, cars, and credit cards.

Federal Reserve Chairman Jerome Powell acknowledged the economic pain this rapid tightening regime may cause.

“No one knows whether this process will lead to a recession or, if so, how significant that recession would be,” Powell said Wednesday afternoon in a press conference following the central bank’s policy announcement, which came after a two-day monetary policymaking meeting.

The Fed’s updated Summary of Economic Projections, released Wednesday, reflects that pain: The quarterly report showed a less optimistic outlook for economic growth and the labor market, with the median unemployment rate inching up to 4.4% in 2023, higher than the 3.9% Fed officials projected in June and substantially higher than the current rate of 3.7%.

US gross domestic product, the main measure of economic output, was revised down to 0.2% from 1.7% in June. That’s well below analysts’ estimates: Bank of America economists had estimated that GDP would be revised to 0.7%.

02:18 – Source: CNN

JPMorgan Chase CEO warns policy makers to be ‘prepared for the worst’

Inflation projections also grew. Core Personal Consumption Expenditures, the Fed’s favored measure of rising prices, is projected to hit 4.5% this year and 3.1% in 2023, the Fed’s SEP showed. That’s up from June projections of 4.3% and 2.7%, respectively.

Perhaps most important to investors seeking forward guidance from the Fed is the projection of the federal funds rate, which outlines what officials think is the appropriate policy path for rate hikes going forward. The numbers released on Wednesday showed that the Federal Reserve expects interest rates to remain elevated for years to come.

The median federal funds rate projection was revised upwards for 2022 to 4.4% from 3.4% in June. That number rises to 4.6% from 3.8% for 2023. The rate was also revised higher for 2024 to 3.9% from 3.4% in June and is expected to remain elevated at 2.9% in 2025.

Overall, the new projections show the growing risk of a hard landing, where monetary policy tightens to the point of triggering a recession. They also provide some proof that the Fed is willing to accept “pain” in economic conditions in order to bring down persistent inflation.

The higher prices mean that consumers are spending around $460 more per month on groceries than they were this time last year, according to Moody’s Analytics. Still, the job market remains strong, as does consumer spending. Housing prices remain high in many areas, even though there has been a substantial spike in mortgage rates. That means the Fed may feel that the economy can swallow more aggressive rate hikes.

Read More Here

Related Posts


Tesla AI Day 2022: Biggest Reveals In Under 15 Minutes

Tesla AI Day 2022: Biggest Reveals in Under 15 Minutes  CNETTesla robot slowly walks on stage at AI Day  CNNOptimus Robot Revealed at Tesla AI Day  CNET HighlightsTesla Semi with “alien dreadnaught” Cybertruck graffiti makes appearance at AI Day 2022  TESLARATIElon Musk reveals a humanoid robot at Tesla AI Day 2022  The Verge Read More...