Federal Reserve Interest Rates: The Fed may raise interest rates again, see details here

Due to increasing inflation, the US Federal Reserve Bank has increased interest rates by 25 basis points. The central bank announced an increase in interest rates and after this increase, the reference interest rate in the country was in the range of 5.25 to 5.50 percent. Interest rates in the United States have reached their highest level in 22 years.

Interest rates had already reached this level in January 2001. The Federal Reserve decided to raise rates for the 11th time in its last 12 meetings. In addition to this, the given policy statement indicates a further increase in interest rates. So here we will share the Federal Reserve interest rates – the latest information on this is available inside, so check this page.

Federal Reserve Interest Rates 2023

The Federal Reserve of the Central Bank of the United States (FED) has dealt a heavy blow. The Federal Reserve raised interest rates at its July policy meeting. In this way, a quarter has increased, that is, 0.25%. Because of this, the interest rate has been in the range of 5.25-5.5%. However, this decision of the Federal Reserve was maintained according to the estimates of the experts. We tell you that in July the number of interest rate increases reached a maximum of 22 years. Previously, January 2001 had the highest interest rates.

The US Federal Reserve Bank has hinted at further interest rate hikes this year. Federal Reserve Bank chief Jerome Powell said during the press conference that until inflation is brought under control, the central bank can take such measures and said that we will continue to review economic policy until we are convinced that the Inflation has come down to our target. of 2 percent. If necessary, we are willing to toughen it up further and we still have a long way to go in this process.

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Increase in interest from the Federal Reserve

The Federal Reserve (US FED) has not indicated further interest rate relief. According to the statement given after the meeting, interest rates will continue to rise. The Federal Reserve said that the decision to raise rates at the September meeting would depend on the economic situation. We tell you that in July Fed policy, all members voted to raise rates. The central bank has increased rates to control inflation.

US Federal Reserve Chairman Jerome Powell said the full effect of the interest rate hike is yet to come. The inflationary pressure is still there. It is necessary to reduce underlying inflation. However, it is difficult to put the inflation rate in the range of 2% before the year 2025, but we do not predict a recession.

The Federal Reserve raised rates

The US Federal Reserve has raised interest rates by a quarter and experts now believe there is little hope of further rate hikes. A reduction in rates can be seen starting next year, that is, in May 2024. In this case, rates can decrease up to 1.25%. Following the July policy, there is a slight drop in the 10-year bond yield. The Federal Bank of America has raised interest rates again. This time it has increased 25 basis points.

With this, the official interest rate in the United States has reached the maximum of the last 16 years. The central bank of the United States has increased the interest rate citing inflation. Interest rates have increased for the eleventh time in the last 12 meetings. With this, the overnight benchmark interest rate has moved in the range of 5.25% to 5.50%. The Federal Reserve has raised rates many times in recent months.

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Economic Impacts of Fed Rate Hikes

To control inflation, the Federal Reserve began raising interest rates, which at 18 months were close to zero. Home loans and other types of loans have become expensive for people due to rising interest rates. Generally the demand for loans is lower and people start to save. This slows down the economy. But the US economy has performed better than expected. The performance of the labor market in particular has been very good. There has been a lot of growth in this and at the same time the salary has also increased.

Due to the increase in the Federal Reserve rates, foreign investors begin to withdraw money from other stock exchanges and invest it in the American market. Because of this, the Stock Markets of other nations begin to go down. This indirectly also puts pressure on the other countries to increase the repo rate and if the central bank of another country decides to increase the rate, it will directly affect the general public of the country.

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Source: vtt.edu.vn

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