The Fed has just concluded their last meeting of the year with an additional hike in interest rates. Despite economic improvements, Powell feels additional increases in the interest rate are warranted. He maintains that the Fed will continue to enforce its contractionary policies into the new year. These contractionary policies are being enforced to combat inflation. This news has caused disruption in the markets and has led forecasters to heavily revise their 2023 economic projections.
One interesting point in the article is that Powell is willing to let the economy "suffer" to avoid high inflation. This interests me because people are already really frustrated with rising prices. The unwillingness to decrease prices stem from anxiety over repeating mistakes made in the 1970s. It will be interesting to follow the results of the Fed's next meeting in February.
https://finance.yahoo.com/news/fed-downshifts-half-point-hike-190001500.html
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