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Central Banks Raise Rates and Warn of Further Increases Amid Persistent Inflation

  • The Federal Reserve and other major central banks are likely to raise interest rates further to combat high inflation.
  • While inflation has moderated since last year, it remains elevated and is embedded in economies.
  • Higher rates are slowing housing markets and consumer spending, sparking recession fears.
  • Mortgage holders and borrowers face significantly higher costs, reducing disposable income.
  • Economic pain may be necessary to bring inflation to central bank targets.
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