A Labor Department report released Wednesday shows an increase in consumer prices due to significant raises in energy and gas costs, prompting concerns that the Federal Reserve will again raise interest rates to fight inflation.
Federal Reserve Chairman Ben Bernanke this week expressed concerns over core inflation and noted a slowing economy, cooling housing market, and lower consumer spending, leading investors to expect another interest rate hike.
In an effort to curb the growing rate of inflation, the Federal Reserve raised a key short-term rate to a five-year high of 5 percent and warned that future interest rate increases may be needed. Economics correspondent Paul Solman discusses…
The Federal Reserve Tuesday cut a key interest rate by a quarter point, the eleventh cut this year.
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