The Federal Reserve (Fed), the central bank of the United States, raised the benchmark rate by 0.75 percentage points on 2.
The Fed raised its benchmark interest rate by 0.75 percentage points for the fourth consecutive time and took another giant leap.
As a result, the US benchmark interest rate rose to 3.75-4.00%, the highest level since the beginning of 2008.
The Fed said in a statement that it was “very wary of inflation risks” and hinted at further rate hikes.
Fed Chairman Jerome Powell said in a press conference that “there is considerable uncertainty” about the level of interest rates needed to keep inflation low. He added that there is still a long way to go to put an end to the austerity policy.
Meanwhile, experts predicted that the interest rate in December will rise by 0.5% p, a slight decline from the previous 4 times.
Meanwhile, the shares rose following the Fed’s announcement the day before selling again. Notably, the share price fell as the yield on the two-year bond hit a high of 4.59%, CNBC, a US economic broadcaster, reported.
VOA News
* This article referred to Reuters.
