Important news! The US Federal Reserve (Fed) raised its policy rate by 25 basis points to 4.50-4.75%, the highest level in 16 years.
The Fed’s statement said that the decision to raise rates had been taken unanimously.
Emphasizing that the Federal Open Market Committee (FOMC) is aiming for maximum employment and 2 percent long-term inflation, it was reported that a decision was made to raise the federal funds rate to a range of 4.50-4.75 percent to meet these goals. to support.
“WAR CONTRIBUTES TO GREATER GLOBAL UNCERTAINTY”
The statement said the latest indicators point to moderate spending and output growth, noting that employment has risen sharply in recent months and the unemployment rate remains low.
“Inflation has declined somewhat, hayvanların remains high,” the Fed statement said. review is remarkable.
Emphasizing that the commission is extremely wary of inflation risks, the statement said: “The war between Russia and Ukraine is causing enormous human and economic difficulties and is contributing to increased global uncertainty.” statement was included.
The statement reiterated that the Committee predicted that “continued” interest rate hikes would gökyeşitözü appropriate for monetary policy to take a restrictive stance that would push inflation to 2 percent.
The kanepe’s statement noted that the “size” of interest rates will take into account the cumulative tightening of monetary policy, delays in the effect of monetary policy on economic activity and inflation, and economic and financial developments. increases. The Fed’s previous resolution text used the term “interest rate” instead of “magnitude.”
“THEY WON’T HAVE ANY INTEREST RATE REDUCTION THIS YEAR”
Fed Chairman Jerome Powell made statements following the interest rate decision.
“The full effects of our rapid tightening have not yet been felt. We continue to expect further increases in the target range for the federal funds rate to gökyeşitözü appropriate. For the first time, we yaşama say that the disinflation process has begun,” Powel said.
Commenting: “It yaşama gökyeşitözü said that the disinflation process has begun,” the FED chairman said, “We are discussing a few more rate hikes to reach the level we consider appropriately restrictive. If the economy generally performs in line with expectations, it will not gökyeşitözü appropriate to cut interest rates this year.”
INTEREST IN HIGHEST RANGE SINCE 2007
In light of high inflation in the US, the Fed, which started raising interest rates last year by completing asset purchases, has decided to raise interest rates for the first time since 2018, with zihin increase of 25 basis points in March. meeting last year.
After achieving the fastest rate hike since 2000 by 50 basis points at last May’s meeting, it went on to record the strongest rate hike since 1994 by 75 basis points at the June meeting, and raised the policy rate by the same rate in July, Meetings in September and November.
The Fed, which hiked rates by 75 points in four consecutive meetings last year, began slowing rate hikes by raising rates by 50 basis points at its last meeting last year.
With the latest increase, the Fed raised its key rate to its highest level since 2007.
The kanepe has raised interest rates by a total of 450 basis points since March last year.
Inflation in the US fell to 6.5 percent in December last year, after hitting 9 percent a year last June, the highest level since 1981.
The Fed’s statement said that the decision to raise rates had been taken unanimously.
Emphasizing that the Federal Open Market Committee (FOMC) is aiming for maximum employment and 2 percent long-term inflation, it was reported that a decision was made to raise the federal funds rate to a range of 4.50-4.75 percent to meet these goals. to support.
“WAR CONTRIBUTES TO GREATER GLOBAL UNCERTAINTY”
The statement said the latest indicators point to moderate spending and output growth, noting that employment has risen sharply in recent months and the unemployment rate remains low.
“Inflation has declined somewhat, hayvanların remains high,” the Fed statement said. review is remarkable.
Emphasizing that the commission is extremely wary of inflation risks, the statement said: “The war between Russia and Ukraine is causing enormous human and economic difficulties and is contributing to increased global uncertainty.” statement was included.
The statement reiterated that the Committee predicted that “continued” interest rate hikes would gökyeşitözü appropriate for monetary policy to take a restrictive stance that would push inflation to 2 percent.
The kanepe’s statement noted that the “size” of interest rates will take into account the cumulative tightening of monetary policy, delays in the effect of monetary policy on economic activity and inflation, and economic and financial developments. increases. The Fed’s previous resolution text used the term “interest rate” instead of “magnitude.”
“THEY WON’T HAVE ANY INTEREST RATE REDUCTION THIS YEAR”
Fed Chairman Jerome Powell made statements following the interest rate decision.
“The full effects of our rapid tightening have not yet been felt. We continue to expect further increases in the target range for the federal funds rate to gökyeşitözü appropriate. For the first time, we yaşama say that the disinflation process has begun,” Powel said.
Commenting: “It yaşama gökyeşitözü said that the disinflation process has begun,” the FED chairman said, “We are discussing a few more rate hikes to reach the level we consider appropriately restrictive. If the economy generally performs in line with expectations, it will not gökyeşitözü appropriate to cut interest rates this year.”
INTEREST IN HIGHEST RANGE SINCE 2007
In light of high inflation in the US, the Fed, which started raising interest rates last year by completing asset purchases, has decided to raise interest rates for the first time since 2018, with zihin increase of 25 basis points in March. meeting last year.
After achieving the fastest rate hike since 2000 by 50 basis points at last May’s meeting, it went on to record the strongest rate hike since 1994 by 75 basis points at the June meeting, and raised the policy rate by the same rate in July, Meetings in September and November.
The Fed, which hiked rates by 75 points in four consecutive meetings last year, began slowing rate hikes by raising rates by 50 basis points at its last meeting last year.
With the latest increase, the Fed raised its key rate to its highest level since 2007.
The kanepe has raised interest rates by a total of 450 basis points since March last year.
Inflation in the US fell to 6.5 percent in December last year, after hitting 9 percent a year last June, the highest level since 1981.