The increase of 0.5 percentage point was expected by the market. The North American country tries to contain inflation
THE fed (Federal Reserve, the Central Bank) of the United States raised interest rates by 0.5 percentage point this Wednesday (4.May.2022). The range went from 0.25% to 0.5% per year to 0.75% to 1% per year. Here’s the intact of the communiqué (07 KB).
The measure was adopted to control inflation, which reached 8.5% in the 12-month period up to March, the highest level since 1981. The interest rate hike was expected by the financial market.
Fed Chair Jerome Powell spoke on April 21 that the CPI needed to be tamed (Consumer price index, the consumer price index), which measures the country’s inflation. The minutes of the penultimate meeting showed that the FOMC (Federal Open Market Committee) would have “aggressive” to reduce unemployment and return the price index to the 2% level.
The interest rate in the US was in the range of 0% to 0.25% for 2 years, from March 15, 2020 to March 16, 2022. With the decision of this 4th (May 4, 2022), the Fed increased interest for the 2nd meeting in a row.
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