US Federal Reserve raised the interest rate by 75 basis points to the range of 2.25-2.5% per year, CNN reported.
The TV station commented that the Fed’s decision coincided with the forecasts of economists and market participants.
Thus, the Federal Reserve raised the interest rate by 75 bp. at the end of the second consecutive meeting.
The regulator’s guidance noted a weakening of output and spending in the US economy, while pointing to strong job growth in recent months while unemployment remained low.
“Inflation remains highreflecting supply-demand imbalances caused by the pandemic, rising food and energy prices and broader price pressures,” the paper said.
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Events in Ukraine create “additional upward pressure on inflation and have a negative impact on global economic activity,” the Fed stressed.
US consumer price growth accelerated to 9.1% in June from 8.6% in May, marking a new high in more than 40 years.
“The Fed is committed to achieve maximum employment and inflation of 2% in the long run,” the statement said.
“In assessing the appropriateness of monetary policy, the Fed will continue to monitor the impact of incoming information on the economic outlook. The Fed stands ready to adjust its approach to monetary policy, if necessary, if risks arise that could prevent the achievement of the objectives of Fed,” the media release said. – The committee will take into account a wide range of informationincluding data from the health sector, labor market conditions, inflationary pressures and expectations, financial market developments and international events”.
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Financial markets in the US reacted moderately to the outcome of the Fed meeting, as it is largely included in the current quotations. As of 21:16 Moscow time, the Dow Jones stock index rose by 0.4%, the Standard & Poor’s 500 – by 1.44%, and the Nasdaq Composite – by 2.65%. The 10-year U.S. Treasury yield is still near 2.77%.
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