The most common loan interest rate has not been at such a high level since 2008.
The US central bank has raised the key interest rate by 0.75 percentage points.
The most common loan interest rate is 3.75–4.0 percent. The last time the interest rate was this high was in January 2008.
It was the sixth time this year that the central bank has raised the key interest rate. The central bank justifies interest rate increases by curbing inflation.
Inflation in the United States is at its highest level since the early 1980s, and rising prices have become one of the central themes of next week’s congressional elections.
Interest rates have continued to be raised, but the central bank assumes that future increases will be smaller and will occur at a slower pace.
The CEO calls for patience
Governor of the central bank, the Fed Jerome Powell said at the press conference that it is still very early to talk about giving up interest rate hikes.
– It takes time for the full effects of tighter monetary policy to be seen, especially in inflation, Powell said.
He warned that curbing inflation will inevitably lead to a slowdown in US economic growth.
The market had been feverishly waiting for information on whether the Fed is about to relax its aggressive interest rate policy.
Stock prices have recently started to rise, because it is believed that the Fed will soon at least slow down the pace of withdrawals, so that it can monitor the effect of interest rate increases on prices.
So far, the interest rate hikes have not caused the rise in prices to change, even though the housing market has slowed considerably due to the high cost of borrowing money.
More on the topic:
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The U.S. central bank again quickly raised the key interest rate – interest rate hikes are also likely to continue