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After the Bell: Federal Reserve raises key interest rate; Meta cuts costs; more millionaires

INDIANAPOLIS (WISH) — Wednesday the Federal Reserve raised its key interest rate by 75 basis points for the third straight time. It’s a move meant to bring down the highest inflation in 40 years.

Jerome Powell, Federal Reserve chairman says his main message has not changed. “Bring down inflation until the job is done,” Powell said. “In July Americans would experience some pain from the bank’s aggressive stance. The FED said Tuesday a tepid economy into 2023 will mean rising layoffs and unemployment.

Meta cutting costs by 10% over the coming months

This will mean job reductions instead of formal layoffs.

In July, the Facebook parent company reported a 22 % year-over-year increase in costs, while missing its second quarter earnings.

Increase in millionaires

It’s not rough out there for everyone. “About 2.5 million Americans became millionaires last year. That’s the largest increase in millionaires in any country in any year this century,” Credit Suisse said.

The agency says stock market gains and housing prices helped people get really rich.

There are now 62 million millionaires across the globe.