For the ninth time in a row, the Federal Reserve (FED) of the United States on Wednesday raised interest rates by a quarter of a percentage point (0.25%) and anticipated that it was “about to stop further increases in borrowing costs.”
Living up to the forecast, Fed policymakers voted unanimously to raise its benchmark interest rate, which will make it more expensive for people looking for car loans or carrying balances on their credit cards.
Members of the Fed’s rate-setting committee said additional rate hikes may be needed to restore price stability. On average, policymakers expect rates to rise another quarter of a percentage point by the end of this year, according to new projections also released Wednesday.
“The FED Committee anticipates that further policy tightening may be appropriate,” the Jerome Powell-led institution said in a statement.
Some observers have urged the central bank to pause its rate hikes, at least temporarily, to assess the fallout from the collapse of Silicon Valley Bank and Signature Bank earlier this month.
However, the tension in the banking system seemed to have eased in recent days. Treasury Secretary Janet Yellen said Tuesday that large withdrawals from regional banks have “flattened out,” and their shares have risen this week.
Source: Larepublica
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