raises interest rates w United States of America they were discounted, the only question was their scale. The market almost unanimously assumed that the FOMC (Federal Open Market Committee, the body that decides on interest rates) would raise rates by 50 basis points.
So it happened. Means that the cost of borrowing in the US has risen to the range of 4.25-4.50 last seen in October 2007.ie at the highest level in 15 years.
This is the sixth increase in this cycle. Previously, the US central bank raised rates by 0.75 basis points four times in a row. The pace of interest rate hikes has already slowed reported by Fed members.
US interest rates. The Fed has made a decision
From the November meeting Powered there were signs of easing inflationary pressures in the US. This will most likely lead to a more cautious central bank approach to rate hikes.
Experts predict that US interest rates could rise by a total of 0.75 percentage points, in the range of 5-5.25%. The level has not been this high since June 2006.
The current FOMC hike cycle started in March of this year and during that time rates have risen by 4.25 percentage points. This is the most aggressive way to raise interest rates since Jimmy Carter’s presidency in the early 1980s.
US consumer inflation in November 2022 it fell to 7.1%. year-over-year by 7.7%. in October.
When raising interest rates, the Fed must be careful not to stifle economic growth. The saying “when the US sneezes, Europe gets the flu” still holds true. It is therefore not surprising that the economic situation in this country is closely monitored and there are fears that the overseas recession, which could be the result of high interest rates to fight inflation, could significantly worsen the economic situation in Europe.
