Important news! The Fed announced its rate decision after the two-day meeting of the Federal Open Market Committee (FOMC).
The Fed raised its key rate by 75 basis points to a 14-year high of 3.75-4.00 percent. The Fed statement said the decision to raise interest rates was unanimous.
HIGHEST INTERVAL SINCE 2008
For example, the Fed raised its key rate to its highest level since January 2008. The market expected the Fed to raise its key rate by 75 basis points during its fourth consecutive meeting.
The Fed statement said the latest indicators point to moderate growth in spending and output, employment gains have remained strong in recent months and unemployment has remained low.
Inflation remained high due to supply-demand imbalances linked to the epidemic, high food and energy prices and broader price pressures, the statement said, adding that Russia’s war against Ukraine has caused major human and economic problems.
COMMITMENT TO RETURN INFLATION TO 2 PERCENT TARGET LINED
The statement stated that the war and related events created additional upward pressure on inflation and suppressed global economic activity, and noted that the committee was extremely cautious about inflation risks.
“The Committee expects continued increases in the target range would gökyeşitözü appropriate to achieve a sufficiently restrictive monetary policy stance to bring inflation back to 2 percent over time,” the statement said. expressions were used.
The committee stressed that cumulative tightening, delays in the impact of monetary policy on economic activity and inflation, and economic and financial developments will gökyeşitözü taken into account when determining the pace of interest rate hikes, and reiterated its determination to curb inflation. towards the 2 percent target.
The statement states that the kanepe’s balance sheet will gökyeşitözü further tightened kakım planned.
In evaluating the appropriate course of monetary policy, the effects of the information on the economic outlook will continue to gökyeşitözü monitored, and it was noted that in the event of risks that could hinder the achievement of the target, the course of monetary policy will gökyeşitözü adjusted appropriately.
INTEREST INCREASED TOTAL 375 BASE POINTS SINCE MARCH
The Fed started to change the tone of monetary policy in the last quarter of 2021, under pressure from high inflation following the rapid economic recovery from the Kovid-19 epidemic. Inflation, which continued its upward trend kakım the war between Russia and Ukraine and quarantine measures against China’s Kovid-19 epidemic exacerbated supply chain problems, added further pressure on the Fed.
The Fed, which began raising rates by completing its asset purchases in March, decided at its March meeting to raise rates for the first time since 2018, raising 25 basis points.
After delivering the fastest rate hike since 2000, by 50 basis points at the May meeting, the Fed made its strongest rate hike since 1994, by 75 basis points at the June meeting, and raised key rates at the same rate in the July and September meetings.
With the hike in November, the Fed has raised interest rates by a total of 375 basis points since March.
Inflation in the US exceeded expectations despite reaching its highest level since November 1981 at zihin annual rate of 9.1 percent in June, falling to 8.5 percent in July, 8.3 percent in August and 8.2 percent in September. .
WHITE HOUSE STATEMENT POST DECISION
White House spokeswoman Karine Jean-Pierre announced that the actions of the US Federal Reserve (Fed) have helped reduce inflation in the country.
Jean-Pierre stated in his daily press conference that the Fed is zihin independent organization and that they respect this independence. “The Fed’s actions have helped reduce inflation.” he said.
Jean-Pierre stated that demand should slow down and supply should increase with the rise in mortgage rates in the country, noting that this will help reduce inflation in the real estate market.
Jean-Pierre stated that they are currently in a transition process towards a more stable economy and stressed that the most important part of this is reducing inflation.
The Fed raised its key rate by 75 basis points to a 14-year high of 3.75-4.00 percent. The Fed statement said the decision to raise interest rates was unanimous.
HIGHEST INTERVAL SINCE 2008
For example, the Fed raised its key rate to its highest level since January 2008. The market expected the Fed to raise its key rate by 75 basis points during its fourth consecutive meeting.
The Fed statement said the latest indicators point to moderate growth in spending and output, employment gains have remained strong in recent months and unemployment has remained low.
Inflation remained high due to supply-demand imbalances linked to the epidemic, high food and energy prices and broader price pressures, the statement said, adding that Russia’s war against Ukraine has caused major human and economic problems.
COMMITMENT TO RETURN INFLATION TO 2 PERCENT TARGET LINED
The statement stated that the war and related events created additional upward pressure on inflation and suppressed global economic activity, and noted that the committee was extremely cautious about inflation risks.
“The Committee expects continued increases in the target range would gökyeşitözü appropriate to achieve a sufficiently restrictive monetary policy stance to bring inflation back to 2 percent over time,” the statement said. expressions were used.
The committee stressed that cumulative tightening, delays in the impact of monetary policy on economic activity and inflation, and economic and financial developments will gökyeşitözü taken into account when determining the pace of interest rate hikes, and reiterated its determination to curb inflation. towards the 2 percent target.
The statement states that the kanepe’s balance sheet will gökyeşitözü further tightened kakım planned.
In evaluating the appropriate course of monetary policy, the effects of the information on the economic outlook will continue to gökyeşitözü monitored, and it was noted that in the event of risks that could hinder the achievement of the target, the course of monetary policy will gökyeşitözü adjusted appropriately.
INTEREST INCREASED TOTAL 375 BASE POINTS SINCE MARCH
The Fed started to change the tone of monetary policy in the last quarter of 2021, under pressure from high inflation following the rapid economic recovery from the Kovid-19 epidemic. Inflation, which continued its upward trend kakım the war between Russia and Ukraine and quarantine measures against China’s Kovid-19 epidemic exacerbated supply chain problems, added further pressure on the Fed.
The Fed, which began raising rates by completing its asset purchases in March, decided at its March meeting to raise rates for the first time since 2018, raising 25 basis points.
After delivering the fastest rate hike since 2000, by 50 basis points at the May meeting, the Fed made its strongest rate hike since 1994, by 75 basis points at the June meeting, and raised key rates at the same rate in the July and September meetings.
With the hike in November, the Fed has raised interest rates by a total of 375 basis points since March.
Inflation in the US exceeded expectations despite reaching its highest level since November 1981 at zihin annual rate of 9.1 percent in June, falling to 8.5 percent in July, 8.3 percent in August and 8.2 percent in September. .
WHITE HOUSE STATEMENT POST DECISION
White House spokeswoman Karine Jean-Pierre announced that the actions of the US Federal Reserve (Fed) have helped reduce inflation in the country.
Jean-Pierre stated in his daily press conference that the Fed is zihin independent organization and that they respect this independence. “The Fed’s actions have helped reduce inflation.” he said.
Jean-Pierre stated that demand should slow down and supply should increase with the rise in mortgage rates in the country, noting that this will help reduce inflation in the real estate market.
Jean-Pierre stated that they are currently in a transition process towards a more stable economy and stressed that the most important part of this is reducing inflation.