Ticker: Fed hikes key rate by a half-point; CVS raises outlook for 2022

The Federal Reserve intensified its fight against the worst inflation in 40 years by raising its benchmark short-term interest rate by a half-percentage point Wednesday — its most aggressive move since 2000 — and signaling further large rate hikes to come.

The increase in the Fed’s key rate raised it to a range of 0.75% to 1%, the highest point since the pandemic struck two years ago. The Fed also announced that it will start reducing its huge $9 trillion balance sheet, which consists mainly of Treasury and mortgage bonds.

In their statement Wednesday, the central bank’s policymakers said they are “highly attentive to inflation risks.”

The statement also noted that Russia’s invasion of Ukraine is worsening inflation pressures by raising oil and food prices. It added that “COVID-related lockdowns in China are likely to exacerbate supply chain disruptions,” which could further boost inflation.

CVS raises outlook for 2022

COVID-19 vaccines and tests for the virus continue to boost CVS Health and the health care giant raised its annual forecast after yet another strong quarter.

The drugstore chain and pharmacy benefit manager, based in Woonsocket, Rhode Island, also processed more prescriptions and added customers to its health insurance business in a better-than-expected performance.

Quarterly net income climbed 4% to $2.31 billion. But operating income slipped due to a $484 million settlement the company reached with the state of Florida to settle opioid-related litigation.

Overall, the company posted adjusted earnings of $2.22 per share, beating analyst projections for $2.17.

CVS Health said it now expects per-share earnings of between $8.20 and $8.40 this year.

The new outlook mostly eclipses Wall Street projections of $8.26 per share, according to FactSet

from Boston Herald https://ift.tt/Q5godEF