The Fed is rapidly unwinding its easy money policies to fight inflation

The Fed is rapidly unwinding its easy money policies to fight inflation

Transcript¹

The Federal Reserve on Wednesday raised interest rates by half a percentage point, as it escalates² its fight against inflation.

A MARTINEZ, HOST:

The Federal Reserve is rapidly unwinding its easy money policies as it tries to crack down on sky-high inflation. The central bank raised interest rates this week by half a percentage point and suggested two more similar rate hikes are likely in the next two months. Here's NPR's Scott Horsley.

SCOTT HORSLEY, BYLINE³: Federal Reserve Chairman Jerome Powell held his first in-person news conference in more than two years Wednesday, but his opening comments were not aimed at the roomful of reporters in front of him. Instead, Powell said he wanted to speak directly to the American people, those who've been struggling to cope with the soaring price of groceries, gasoline and other essentials.

(SOUNDBITE OF PRESS CONFERENCE)

JEROME POWELL: That's who we work for. It's inflation that people are feeling all over the country. And it's very important that they know that we know how painful it is and that we are working hard on fixing it.

HORSLEY: Through most of the pandemic, the Fed kept interest rates close to zero in an effort to prop⁴ up the economy. But with prices now climbing at the fastest pace in four decades, the central bank has done a quick about-face. By making it more expensive to borrow money, Powell and his colleagues hope to cool off consumer demand and bring inflation under control. Some economists⁵ warn that's likely to lead to a recession. But despite challenges posed by the war in Ukraine and ongoing⁶ COVID lockdowns in China, Powell says the U.S. economy is in good shape to weather the higher interest rates.

(SOUNDBITE OF PRESS CONFERENCE)

POWELL: I think we have a good chance to restore price stability without a recession, without, you know, a severe downturn and without materially higher unemployment.

HORSLEY: The stock market, which had been even more volatile⁷ than usual in the run up to this week's Fed meeting, rallied sharply while Powell was speaking, especially when the Fed chairman said he and his colleagues are not seriously considering even larger rate increases of three-quarters of a percent at a time. The Dow Jones Industrial Average soared more than 900 points on Wednesday. Both the Nasdaq and the S&P 500 Index jumped about 3%.

Scott Horsley, NPR News, Washington.

(SOUNDBITE OF BRAD MEHLDAU'S "GOT ME WRONG"

1 transcript   

n.抄本，誊本，副本，肄业证书

参考例句：

• A transcript of the tapes was presented as evidence in court.一份录音带的文字本作为证据被呈交法庭。
• They wouldn't let me have a transcript of the interview.他们拒绝给我一份采访的文字整理稿。

2 escalates   

v.（使）逐步升级( escalate的第三人称单数 )；（使）逐步扩大；（使）更高；（使）更大

参考例句：

• As the challenge escalates, the need for teamwork elevates. 面临的挑战越大，越需要团队协同合作。 来自互联网
• I cannot understand why a minor disagreement escalates into a fist-fight. 我真不明白为什么一点意见不合就变成了拳头相见。 来自互联网

3 byline   

n.署名；v.署名

参考例句：

• His byline was absent as well.他的署名也不见了。
• We wish to thank the author of this article which carries no byline.我们要感谢这篇文章的那位没有署名的作者。

4 prop   

vt.支撑；n.支柱，支撑物；支持者，靠山

参考例句：

• A worker put a prop against the wall of the tunnel to keep it from falling.一名工人用东西支撑住隧道壁好使它不会倒塌。
• The government does not intend to prop up declining industries.政府无意扶持不景气的企业。

5 economists   

n.经济学家，经济专家( economist的名词复数 )

参考例句：

• The sudden rise in share prices has confounded economists. 股价的突然上涨使经济学家大惑不解。
• Foreign bankers and economists cautiously welcomed the minister's initiative. 外国银行家和经济学家对部长的倡议反应谨慎。 来自《简明英汉词典》

6 ongoing   

adj.进行中的，前进的

参考例句：

• The problem is ongoing.这个问题尚未解决。
• The issues raised in the report relate directly to Age Concern's ongoing work in this area.报告中提出的问题与“关心老人”组织在这方面正在做的工作有直接的关系。

7 volatile   

adj.反复无常的，挥发性的，稍纵即逝的，脾气火爆的；n.挥发性物质

参考例句：

• With the markets being so volatile,investments are at great risk.由于市场那么变化不定，投资冒着很大的风险。
• His character was weak and volatile.他这个人意志薄弱，喜怒无常。