(Finance) – The Federal Reserve raised interest rates by another 25 basis points and, at the same time, it has remodeled its determinations for future decisions in such a way as to also open up to a possible stop on the rate hike phase, which however is not explicitly indicated. In the press release, in fact, it is written that will “account” for the effects of raises before raising them again.
The benchmark level on fed funds rises to one range of 5-5.25%, the highest value since mid-2007. This is the tenth consecutive increase decided by the American central bank. The restrictive maneuver was initiated in response to the persistent high inflationin order to facilitate its mitigation.
Today’s decision was taken unanimously by the Federal Reserve Board. The institution led by Jerome Powell reiterates its strong determination to bring inflation back to the 2% target.
In the statement on monetary policy decisions, the bank points out that the US economy showed a moderate rate of expansion in the first quarter. “Job gains have been solid in recent months and unemployment has remained low. Inflation remains high.” And after the failures of several medium-sized banks in the US, the institution claims that “the US banking system is solid and resilient”.