The Fed slows the pace and raises rates by just 0.25 points

The Fed slows the pace and raises rates by just 0.25 points

Fed Chair Jerome Powell is expected to give a press conference in a few minutes, the tone of which will more clearly indicate the direction the regulator will take in the coming months.

The decision was announced after a two-day meeting held by members of the Fed’s Federal Open Market Committee (FOMC), who voted unanimously.

To try to halt inflation, the Fed started hikes in March 2022 at a timid 0.25. In May it raised rates by 0.5 points and in June began a series of 0.75 whole-number hikes before falling back to 0.50 last December.

Since peaking in June (9.1%), inflation has eased to 6.5% and declined for a sixth consecutive month in December, a figure analysts say is a sign that rate hikes are beginning to have an effect on the US economy.

From the Fed, however, they have insisted that they will not stop until a monetary policy is achieved that is sufficiently restrictive to return to 2% inflation.

Source: El heraldo

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