Current Federal Reserve Interest Rate At Highest Level Since 2008

The video discusses the Federal Reserve's ongoing rate hikes to combat inflation, with a recent 75 basis point increase announced by Chairman Jerome Powell. These hikes have tightened financial conditions, particularly affecting interest rate-sensitive sectors like housing. In 2022, there have been six hikes, with a seventh expected, making borrowing more expensive for consumers. Powell acknowledges the hardship caused by inflation, especially for those struggling with essentials, but believes higher rates will eventually reduce inflation to the 2% target. The upcoming jobs report will provide further insights into the impact of these rate hikes.

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