Fed raises US rates for 8th straight time
Federal Reserve raised the rate by 0.25 percentage points; range changed to 4.50% to 4.75%
The Fed (Federal Reserve, the Central Bank of the United States) increased this Wednesday (Feb.1, 2023) the country’s interest rate by 0.25 percentage points. The range passed to 4,50% a 4,75%. This was the 8th consecutive increase. Here is the full statement (84 KB, in English).
In a statement, the US Central Bank said that US inflation has decreased, but remains high.
“Russia’s war against Ukraine is causing enormous human and economic hardship and is contributing to heightened global uncertainty. The Committee is highly attentive to inflation risks”these.
The Fed also stated that the “increases in progress” of the interest rate “will be appropriate” for the US price index to fall. This means that the institution should raise interest rates at the next meeting, scheduled for March 21st.
INFLATION IN THE USA
The increase in interest rates aims to control rising prices in the United States. The target is to reduce the Consumer Price Index to 2%.
Annual US inflation stood at 6.5% in December 2022. It is the lowest since November 2021, when the price index was at 6.8%.