US Fed Announces 0.25% Interest Rate Hike – Tenth Since Pandemic

Euro and dollar banknotesInternationalIndiaAfricaWASHINGTON (Sputnik) – The Federal Reserve on Wednesday announced its tenth rate hike since the end of the COVID-19 outbreak, adding a quarter point to bring US rates to a peak of 5.25% from the 0.25% high they stood at three years ago.But the central bank dropped the language that it had used in recent months that it “anticipates” more policy firming may be appropriate to attain a “sufficiently restrictive” stance. That was a signal that the Fed will likely pause on rate hikes from June onwards. “The Committee decided to raise the target range for the federal funds rate to 5 to 5-1/4 percent,” the Fed said in a statement announcing the latest rate decision by its Federal Open Market Committee. In a departure from previous wording though, it added that the committee will closely monitor incoming information and assess the implications for monetary policy. “In determining the extent to which additional policy firming may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments,” it stated.EconomyFed Deliberately Throttling US Economic Growth, Jerome Powell Tells Pranksters27 April, 16:05 GMT

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