TE24 International Desk:
The Federal Reserve raised its benchmark overnight interest rate by three-quarters of a percentage point on Wednesday to cool the sharpest rise in inflation since the 1980s.
Inflation continues to rise reflecting supply-demand imbalances associated with the pandemic, rising food and fuel prices and rising price pressures,” the Federal Open Market Committee set interest rates at 2.25%. He said he adjusted the range. And the consensus vote was 2.50%. The FOMC added said it was “very cautious” about inflation risks.
However, while employment growth remains “strong,” officials said in a new policy statement that “recent spending and output indicators have moderated,” with aggressive rate hikes since March. I agree with the fact that I am starting to chew.
In addition to last month’s 75 basis point hike and smaller moves in May and March, the Fed is struggling to prevent inflation from bursting from 1980s levels, so it has raised a total of 225 basis points this year.
Federal funds rates are now at levels that most Fed officials believe have a neutral economic impact, effectively ending pandemic-era efforts to spur household and corporate spending with cheap money. It is shown.
The latest policy statement provided some clear indications of the Fed’s next steps. It’s a decision that depends heavily on whether future data indicates inflation has begun to slow.
With recent data showing consumer prices rising more than 9 percent annually, investors expect the Federal Reserve to raise interest rates by at least 0.5 percentage points at its September meeting.
With recent data showing consumer prices rising more than 9 percent annually, investors expect the Federal Reserve to raise rates by at least 0.5 percentage points in September.
Federal Reserve Chairman Jerome Powell may provide details at a news conference scheduled to begin at 2:30 p.m. EDT (1830 GMT).
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