00:00This is the in line with the market's expectations. And this was a unanimous decision from the Federal Reserve to
00:07hike interest rates.
00:08The Fed is also forecasting one additional interest rate hike this year.
00:14This would be the first interest rate hike that we have seen under the new Fed chairman.
00:18The last time they were raising rates, we were in that really persistent cycle of inflation.
00:22They had 11 rate hikes leading up to that, and it had led to higher borrowing costs, but it did
00:28succeed in kind of bringing inflation down.
00:30But now we're in a little bit of a different position here because the inflation that we're seeing in the
00:33economy is a lot of it because of oil.
00:36Some analysts are questioning how much an interest rate hike making those borrowing costs, how much that could do to
00:41actually bring down the price of oil.
00:42The main reason it would do that is to try to tame high inflation.
00:47The fact that we have seen inflation well above the Fed's target, about 3.4 percent when the Fed wants
00:52that number to be 2 percent.
00:53And one of the key reasons why is those rising fuel prices that we have seen because of the Iran
00:58war with the spike in oil.
00:59The Fed does still see inflation staying high through this year, 3.7 percent inflation rate.
01:05So that's above the Fed's 2 percent target.
01:07It says unemployment is stable. Consumer spending is resilient.
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