The Federal Reserve of the United States (Fed) announced this Wednesday a rise of 25 basis points in the reference interest rate, to a range between 4.50% and 4.75%, a slowdown compared to the rise of 50 basic points from the last meeting.
“The committee [FOMC] seeks to achieve full employment and inflation close to 2% in the long term. To support these objectives, the Committee decided to raise the federal funds rate to a range between 4.50% and 4.75%,” the US central bank announced today, in a statement, after the end of the two-day meeting of the Market. federal open. Committee (FOMC).
After four consecutive meetings in which it announced a 75 basis point interest rate hike, the US central bank decided in December to raise rates by 50 basis points, now slowing down again.
In a similar way to the latest announcements, the institution led by Jerome Powell highlights that the latest indicators point to modest growth in spending and production, while the labor market has remained robust in recent months and the unemployment rate has keeps low.
The Fed also notes that inflation has eased slightly, but remains high.
The central bank also mentions that Russia’s war against Ukraine is causing enormous human and economic hardship, which is contributing to high global uncertainty.
“The Committee is very attentive to inflation risks,” he says.
The FOMC also indicates that for future increases it will take into account the cumulative tightening of monetary policy, the way in which monetary policy affects economic activity and inflation, and economic and financial developments.
The bank reports that it will continue to reduce debt securities on the balance sheet.
Source: TSF
