As expected by the market, the United States Federal Reserve (Fed), The central bank of the country, raised this Wednesday the interest rate by 50 basic points, being the highest escalation in two decades
The Fed made this decision in an effort to control the inflation overwhelmed in the United States.
(See: Yield on 10-year US Treasury bonds reached 3%).
Thus, with this increase, the Reference rate in the US economy is in a range of 0.75% to 1%, according to the official statement issued at the end of a two-day meeting of the Federal Reserve’s Monetary Policy Committee.
(See: ‘Do not come’: the United States insists on asking migrants not to enter).
In addition, the Fed also announced that it will begin to reduce its bond holdings from the first of June.
“Russia’s invasion of Ukraine is causing enormous human and economic hardship. The implications for the US economy are highly uncertain. The invasion and related events are creating additional upward pressure on inflation and are likely to weigh on economic activity.”, indicates the agency in the press release.
(See: Spanish is now a necessity in the United States).
In addition, according to the entity, “Covid-19-related lockdowns in China likely to exacerbate supply chain disruptions” and said to be “attentive” to the risks higher inflation.
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