The Federal Reserve (Fed, central bank) from United States announced an interest rate hike of 0.25 percentage point this Wednesday with the aim of fighting a inflation runaway, the first increase since 2018.
With this increase, the official interest rate of the largest economy in the world is placed in a range between 0.25% and 0.5%.
In an official statement at the end of their two-day meeting, Board of Governors of the Federal Reserve system announced that it foresees several more increases in the future, and that it also expects to begin reducing its portfolio of US government debt.
All this with the aim of, after two years strong expansive monetary policyinto an astringent that increases the amount of money in circulation, increase the value of the dollar and reduce price pressures to fight inflation.
Source: El heraldo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
