The Federal Reserve (Fed), Central Bank of the United States, raised interest rates in the country by 0.5 percentage point, the biggest increase since 2000. With that, the target range will be between 0.75% and 1%. This is the second consecutive rate hike in the US in an effort by the Fed to curb US inflation, which is at its lowest level in 40 years.
A statement from the institution, released this Wednesday (4) after a meeting of the Federal Open Market Committee (FOMC), considers that the Russian invasion of Ukraine is “causing enormous human and economic difficulties”. “The implications for the US economy are highly uncertain,” the Fed said.
The note further says that “the invasion and related events are creating additional upward pressure on inflation and will likely weigh on economic activity. In addition, Covid-19-related lockdowns in China are likely to exacerbate supply chain disruptions.” .
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