20:06
Wednesday 21 September 2022
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I wrote – Sherine Salah:
The Federal Reserve (the US central bank) decided today, Wednesday, to raise the interest rate by 0.75%, for the fifth consecutive time since the beginning of this year.
After this increase, the level of interest rates in the Federal Reserve reached between 3 and 3.25%.
The US Federal Reserve’s decision to raise interest rates came as part of its effort to curb high inflation, which hit record highs in nearly 40 years earlier this year.
In the latest data, the annual inflation rate in the United States rose to 8.3% in August, beating analysts’ expectations of between 8 and 8.1%.
The rate hike was in line with expectations that the Fed will increase the yield between 0.75 and 1%.
increase in interest rates
The US Federal Reserve’s journey to raise interest rates began last March, with inflation hitting record highs and tighter monetary policies to address it.
Central banks often resort to raising interest rates and tightening lending at a time of high inflation in order to withdraw liquidity from the markets, thus supporting price control.
America raised the interest rate for the first time in about 4 years during last March by 0.25%, followed by a 0.5% increase in the May meeting, then by 0.75% in June. which was the highest rate of increase since 1994, then the Fed decided to raise another rate in July of 0.75%, then in September 2022.
The US Federal Reserve will meet to review interest rates again on November 1st and 2nd.
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