- Israel readying response to Iran missile attack
- Schutt, Mooney help Australia beat Sri Lanka in Women's T20 World Cup
- Liverpool extend Premier League lead with win at Palace
- Djokovic 'shakes rust off' to make third round of Shanghai Masters
- 'Imperfect' PSG fighting on all fronts - Luis Enrique
- Struggling Pakistan look to thwart adaptable England
- Child 'trampled to death' in asylum seekers' Channel crossing: minister
- Gauff fights back to set up Beijing final against Muchova
- Guardiola claims Premier League won't delay season for Man City
- Israel to mark October 7 attack as Gaza war spreads
- Gauff fights back to reach China Open final
- Recovering Stokes ruled out of first Pakistan Test
- Hezbollah battles troops on border as Israel pounds Lebanon
- Alcaraz, Sinner breeze into third round of Shanghai Masters
- Bagnaia wins Japan MotoGP sprint to cut Martin's lead
- Alcaraz breezes into third round of Shanghai Masters
- Gaza cultural heritage brought to light in Geneva
- 'Bullet for democracy': Trump returns to site of rally shooting
- Italy targets climate activists in 'anti-Gandhi' demo clampdown
- South Korean cult-horror series 'Hellbound' returns at BIFF
- Nepalis fear more floods as climate change melts glaciers
- Honduras arrests environmentalist's alleged murderer
- Padres pitcher Musgrove needs elbow surgery
- Supreme Court lets stand rules to curb mercury, methane emissions
- Boston beat Denver in NBA exhibition season opener, but Jokic says omens are good
- Chagos diaspora angry at lack of input on islands' fate
- Biden says 'not confident' of peaceful US election
- US trade chief defends tariff hikes when paired with investment
- Lukaku stars as Napoli beat Como to hold Serie A top spot
- Ohtani set for MLB playoff debut as Dodgers face Padres
- Pogba's drug ban cut to 18 months from four years
- Devine leads New Zealand to big win over India in Women's T20 World Cup
- Bosnia floods kill 16 people
- EU court blocks French ban on vegetable 'steak' labelling
- Prosecutors seek dismissal of rape charges against French rugby players
- Meta AI turns pictures into videos with sound
- Bolivia's Morales says claims he raped a minor are a 'lie'
- MLB Reds hire two-time champion Francona as manager
- Daniel Maldini receives first Italy call-up for Nations League
- US dockworkers return to ports after three-day strike
- Ancelotti points finger at Madrid's 'lack of intensity'
- Haiti reeling after 70 killed in gang attack
- Five Czech kids in hospital over TikTok 'piercing challenge'
- What happens next in Iran-Israel conflict?
- Country star Garth Brooks denies rape accusations
- Stubbs hits maiden century as South Africa make 343-4 against Ireland
- DR Congo to begin mpox vaccination campaign Saturday in east
- Odegaard injury has forced Arsenal to be 'different', says Arteta
- Ratcliffe refuses to guarantee Ten Hag's Man Utd future
- Meta must limit data use for targeted ads: EU court
From recession to inflation, how the US Fed has dealt with crises
The US Federal Reserve has strongly signaled it will raise interest rates by half a percentage point this week to rein in soaring inflation, and likely continue hiking throughout this year.
The Fed has long played a decisive role when the world's largest economy faces tough times. Here are some of its major actions since the 2008 global financial crisis:
- The financial crisis and recovery -
November 2008: The Fed began injecting liquidity into financial markets following the collapse of Lehman Brothers investment bank. The central bank launched three such programs before ending asset purchases in June 2014.
December 2008: The central bank cut its lending rate to zero amid the crisis, where it remained until December 2015.
October 2017: The Fed began reducing the holdings on its balance sheet, which had ballooned from less than $900 billion before the crisis to $4.5 trillion.
- Trade war slows growth -
December 2018 to August 2019: Interest rates peaked in the range of 2.25 percent to 2.5 percent.
Fall 2019: The Fed cut rates several times to the 1.5-1.75 percent range as the trade war launched by then-president Donald Trump slowed growth. The Republican leader had criticized the bank for its high rates.
- Support during the pandemic -
March 3, 2020: The Fed cut its lending rate by 50 basis points to between one and 1.25 percent.
March 16, 2020: As Covid-19 spread across the country and the economy shut down, the Fed slashed its lending rate by 100 basis points to zero and resumed its asset purchase policy, which eventually reached $120 billion per month in Treasury bonds and mortgage-backed securities.
- Economy recovers, inflation arrives -
November 3, 2021: The Fed announced it will begin slowing the pace of its asset purchases, with a view towards ending them entirely by the following June, which would set the stage for rate hikes to fight inflation.
December 15, 2021: Recognizing that inflation will not be "transitory," as top officials had believed, the central bank accelerated the end of its asset purchases to March.
March 16, 2022: The central bank raised interest rates for the first time since 2018 to the 0.25-0.50 percent range.
April 6, 2022: The minutes from the Fed's March policy meeting are released, showing that many participants see one or more 50-basis point rate hikes as necessary if inflation pressure continues.
April 29, 2022: The Fed's preferred inflation gauge, the personal consumption expenditures price index, rises 6.6 percent year-on-year and 0.9 percent month-on-month in March, both faster paces than the month prior.
A.Silveira--PC