The Federal Reserve raised interest rates by 0.25 percent to a 22-year high on Wednesday, as it plans to expand further this year. The Federal Open Market Committee (FOMC) is expected to continue the fiscal year tightening, raising the Fed funds rate from 5.25% to 5.5%.
Allocation amounts are now in the 5 range. Between 25% and 5.5%, especially starting in 2001, the cost of purchasing a house, car, and other property continues to rise, prohibiting additional financing.
This is the eleventh rate increment since the Fed started its expansion battle in March 2022 and comes only one month after the national bank hit 'stop' to survey the condition of the economy after the disappointments of three provincial banks since the spring, according to Fox Business.
According to its latest forecast, the Central Bank is considering another rate hike this year. The recent recession in inflation has benefited American consumers and corporations, but officials reiterated after the meeting that "inflation remains important" and that the Fed "continues to be particularly concerned with financial risks" and recommends further rate hikes, CNN detailed.
Last month, the Federal Reserve Board stopped raising interest rates. The policy rate was kept at 5.0-5.25%, which is close to zero post-coronavirus.
Despite the recent easing, the US central bank has increased interest rates for the tenth time in a row, necessary to combat expansion in the economy. "Having a solid target at this meeting allows the Committee to obtain more information and its implications for monetary policy," the Fed's monetary policy statement said.
Also read | Centre notifies 8.15 pc interest rate on Employees Provident Fund for FY23
Also read | Centre hikes interest rates on small saving schemes for July-September quarter
Latest Business News
