Thursday, December 08, 2022

Fifth hike in six months: US Federal Reserve hikes interest rate by 0.75 points

The United States Federal Reserve (Fed) on Wednesday announced a 0.75 point increase in the official interest rate, The fifth increase since March and the third increase in three quarters of a point in a fresh attempt to control inflation.

The US central bank met economists’ expectations and the world’s largest economy’s official interest rate was a . goes to Between 3% and 3.25%, the highest level in the last 14 years,

After a two-day meeting, members of the Fed’s Federal Open Market Committee made the decision, which was publicly justified minutes later. Reserve Chairman Jerome PowellIn a press conference.

Powell had already predicted last July, when he announced the previous hike, that another “unusually large increase” in rates would likely take place in September, a prediction he would make again in his latest public speeches. are confirming.

And on this day, after the new increase in rates, he said that The right thing to do is to keep raising “more interest rates in the future” until inflation is under control.

“With today’s action, we have raised interest rates by three percent this year; at some point, as the monetary policy stance tightens, it would be appropriate to slow down the pace of growth,” he said.

He has emphasized this at various public events in recent weeks. The Fed needs to continue restrictive monetary policy to drive down prices and prevent citizens from getting used to high inflationwho stood in august 8,3%,

“We must now act clearly, forcefully, as we have been doing, and we must continue to do so until the work is done,” he said in a recent conversation.

This increase occurs a week after knowing The latest inflation data, which shows that, although the year-on-year rate of the CPI fell by two tenths to 8.3% in August, monthly prices rose by a tenth compared to July,

Data shows that, for the time being, the series of interest rate hikes that the Fed has been implementing since March is still not having the desired effect on prices.

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