The United States Federal Reserve (Fed) raised its reference interest rates on Wednesday by a quarter of a percentage point (0.25 pp) to take them to 0.25% – 0.50%, in the face of inflation in its highest level in 40 years and could continue to rise, according to his forecasts.
It should be noted that this increase occurs after exactly two years, since on March 16, 2020, the US entity decided to reduce it to 0% to mitigate the impacts of the arrival of the Covid-19 pandemic.
The situation in Ukraine “could create additional upward pressure on inflation and weigh on economic activity,” the Fed said in a statement, following a two-day meeting of its monetary policy committee.
Those responsible for the agency foresee additional rate hikes this year, and predict a GDP expansion of 2.8% in 2022 compared to 4% of their previous forecasts.
AFP
Source: Larepublica
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