Fed raises US rates to 4.5%-4.75%, highest since 2007

The website United States Federal Reserve (Fed) raised interest rates on Wednesday 25 basis pointsat the interval between 4.5% and 4.75%.. A decision that was placed in line with forecasts consensus forecasts and which drove the price of silver in the world’s largest economy up to peaks of October 2007.

In addition, the US central bank has indicated that it is still considering ” appropriate new rises“interest rate hikes to contain high inflation in the United States, in an environment of near full employment. The very forecasts planned in December anticipate others two hikes of 25 basis pointsat 5%-5.25%over the next two meetings.

“Recent indicators point to a moderate spending growth and exit. The website job creation has been robust in recent months and unemployment rate remained low. The website inflation decreased somewhat, but stay high. Russia’s war against Ukraine is causing immense human and economic suffering and contributing to increased global uncertainty. The Committee is very attentive to the risks of inflation”, explained the monetary body chaired by Jerome Powell.

“The Committee anticipates that the continuous increases“in interest rates” will be appropriate achieve a monetary policy stance that is tight enough to bring inflation closer to the inflation target. 2% over time,” the Fed added.

» In determining the magnitude of future increases in the target range, the Committee will consider the following a cumulative tightening of monetary policy.the delays with which monetary policy affects economic activity and inflation, as well as economic and financial developments,” the institution reiterated, in line with what was published at its December meeting.

About the reducing its balance sheeta process known as quantitative hardening (QT) and which is to drain liquidity from the market, the Fed will continue to reduce its holdings of Treasuries and mortgage-backed securities in $95 billion per month.

“The Committee is firmly committed to bringing inflation back towards its 2% target. To assess the appropriate monetary policy stance, it will continue to monitor the implications of information received on the economic outlook. The Committee stands ready to adjust the monetary policy stance. if applicable if risks arise that could impede the achievement of its objectives,” the Fed added.

All members of the FOMC, the federal open market committee that decides monetary policy, voted in favor decision.

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