Source: Washington Post
When the Federal Reserve first raised interest rates by a whopping three-quarters of a percentage point in June, Chair Jerome H. Powell said the hike was an “unusually large one.”
“I do not expect moves of this size to be common,” Powell said.
Just three months later, the Fed is poised to do the same thing again — for the third consecutive time. An interest-rate increase that was considered outsized and outlandish until recently has become a bizarre new baseline with inflation showing few signs of improving. What no one knows yet is whether this new status quo means the bank will push too hard, sending the economy toppling into recession.