May 25, 2024

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Fed raises interest rates by 0.25% in line with expectations - Hour Times

Fed raises interest rates by 0.25% in line with expectations – Hour Times

US monetary officials’ decision was in line with market expectations (Image: REUTERS / Jonathan Ernst)

Oh Federal Reserve (Ooty) Decided to raise interest rates To us In the 0.25-0.5% range, at 0.25 percentage points.

This is the first increase in interest rates in the country in 2022. The decision by US currency officials was in line with market expectations.

In a statement issued on Wednesday (16), the central bank pointed out that the country’s economic activity and employment indicators are continuing to strengthen. In addition, inflation is high, which is reflected in the epidemic-related “supply and demand imbalances” with increased price pressures.

The central bank also recalled that the war in Ukraine was bringing “huge” economic and humanitarian problems.

“The impacts on the US economy are very uncertain, but in the short term, the invasion and related events will create additional pressure on inflation and weigh on economic activity,” the central bank said.

With the announcement of the interest rate hike, the central bank expected new rate hikes to occur.

In addition, the group expects to begin reducing its exposure to treasuries and mortgage and agency debt assets at upcoming meetings.

The central bank said it would continue to monitor the impact on the US economic outlook. The panel said it was ready to change the country’s monetary policy if risks increased.

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