Washington: The US central bank has increased the interest rate by 0.75 percent.
According to details, the US central bank raised its benchmark interest rate by three-quarters of a percentage point on Wednesday amid ongoing efforts to curb rising inflation in the world’s largest economy.
According to the US media, interest rate hikes have been done to control inflation, and interest rates have been hiked twice in 2 consecutive months.
The interest rate hike is the largest since the 1980s, with reports that the US Federal Reserve has widened the range of lending rates from 2.25 to 2.5 percent.
The Federal Reserve is expected to raise interest rates another 3.4 percent by the end of 2022, with Federal Reserve Chairman Jerome Powell saying at the central bank’s September meeting that another unusual hike may be appropriate.
The latest interest rate hike was approved unanimously by the 12-member rate-setting committee, as policymakers acknowledged signs of a slowdown in the U.S. economy.
The Federal Reserve has been raising rates at the most aggressive pace since the 1980s, and has now approved hikes at four consecutive policy meetings, beginning in March when the first hike was approved near zero. . This is the level set by the Federal Reserve to stimulate the economy during the coronavirus pandemic.
According to US media, the higher interest rates are aimed at curbing inflation in the US, which rose to 9.1 percent in June, the fastest increase in four decades.
