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HomeLatest NewsUS Federal Reserve reined in base rate hike again KXan 36 Daily...

US Federal Reserve reined in base rate hike again KXan 36 Daily News

Date: March 29, 2024 Time: 20:31:59

“The latest figures point to modest growth in spending and output. Job creation has been strong in recent months and the unemployment rate has remained low. Inflation has eased slightly but remains high” the Fed said in a rate statement.

The Fed raises the rate band to bring inflation down to the 2% long-term target. As can be seen from the regulator’s statement, the increase in the rate range will continue. At the previous meeting on December 14, the Fed raised the rate range by 0.5 percentage point. In June, July, September, and November 2022, the rate increased 0.75 percentage points each time.

According to the United States Department of Labor, annual inflation in the country in December 2022 was 6.5%. Throughout the second half of last year, the indicator slowed down, at the peak of annual inflation was in June – 9.1% (this was a maximum of 40 years). Economists polled by The Wall Street Journal believe US inflation will slow to 3.1% by December 2023.

The Fed began raising the base rate starting in March 2022, this was the first rate increase since December 2018. In 2020, the Fed, in response to the crisis brought on by the coronavirus pandemic, instead, unexpectedly and abruptly and unplanned, it reduced the rate range to 0-0.25%.

An increase in the base interest rate range in the US means the strengthening of the US dollar against other world currencies. The Fed’s actions have little direct effect on Russian financial market and ruble dynamics, but the US rate increase may indirectly put pressure on the ruble exchange rate, including through the prices of raw materials.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Hansen Taylor
Hansen Taylor
Hansen Taylor is a full-time editor for ePrimefeed covering sports and movie news.
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