In view of the high inflation, the US Federal Reserve held out the prospect of further major interest rate hikes of 0.50 or 0.75 percentage points at the end of July. The US Federal Reserve raised its key interest rate by 0.75 percentage points to between 1.50 and 1.75 percent at the most recent meeting
In view of the high inflation, the US Federal Reserve has signaled the prospect of further major interest rate hikes. The intention to raise the key interest rate by 0.50 or 0.75 percentage points at the next meeting in late July says in the minutes of the FOMC meeting on June 14-15, published on Wednesday.
Many participants felt that there was a significant risk of inflation becoming entrenched if the public questioned the Fed’s determination to adjust monetary policy accordingly.
The US Federal Reserve raised its key interest rate by 0.75 percentage points to between 1.50 and 1.75 percent at the most recent meeting. It was the third increase in the key interest rate since the beginning of the corona pandemic – and the first increase of 0.75 percentage points since 1994. The reason for the decisive action is the very high inflation. The annual rate was 8.6 percent in May. The Fed is targeting a rate of 2 percent.
