Fed Again Pushes Up Short-Term Interest Rates

As expected, the Fed again hiked short-term rates last week, a course aimed at damping inflation and tempering economic growth. Jeff Taylor, a NAFCU economist, said inflation continues to rise, especially for the Fed's core personal consumption index, which increased to an annualized 1.75%, and 2.3% for the last three months. "That's considered at the upper level of their comfort level," said Taylor. The Fed has raised the short-term rate six times over the past nine months.