WASHINGTON (AP) — The Federal Reserve is poised this week to accelerate its most drastic steps in three decades to attack inflation by making it costlier to borrow — for a car, a home, a business deal, a credit card purchase — all of which will compound Americans’ financial strains and likely weaken the economy.
Highlights
- The Federal Reserve is poised this week to begin unleashing its most drastic steps in three decades to attack inflation by making it costlier to borrow.
- The Fed is expected to announce Wednesday, May 3, 2022 that it will begin quickly shrinking its vast stockpile of Treasury and mortgage bonds beginning in June.
- The move that will have the effect of further tightening credit will compound Americans’ financial strains and likely weaken the economy.
- Yet many economists think the Fed is already acting too late.
- Even as inflation has soared, the Fed’s benchmark rate is in a range of just 0.25% to 0.5%, a level low enough to stimulate growth.