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Fed to Start Rate Hikes With License to Turn Aggressive Later

  • Fed chair has declared backing for 25 basis point rate liftoff
  • Russian invasion of Ukraine a twin threat to growth, inflation
Bloomberg business news
WATCH: The Federal Reserve will begin, this week, a multi-month campaign to conquer inflation. Bloomberg’s Kathleen Hays reports.Source: Bloomberg

The Federal Reserve will this week begin a multi-month campaign to conquer inflation that could see Chair Jerome Powell moving even more aggressively after Russia’s war on Ukraine fanned prices further.

Already pivoting to tightening monetary policy amid the fastest consumer price gains in four decades, Powell and colleagues now have to deal with the economic fallout of the war, which threatens to deliver the twin blows of weaker growth and even-quicker inflation.