Fed Raises Rates by 0.25% to Curb Inflation: Expert Insights & Market Reactions - Capital Street FX
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Fed Raises Rates by 0.25% in Efforts to Tackle Inflation. Introduction In a decisive move, the Federal Reserve raised interest rates by 0.25% after skipping a boost last month. The decision came as a response to the persistent inflationary trend in the economy, signaling the Fed’s commitment to control rising prices. Fed’s Rate Hike To 5.25% – 5.5% The Federal Open Market Committee (FOMC), the rate-setting body of the Federal Reserve, announced an increase in the benchmark rate to a range of 5.25% to 5.5%. This marks the eleventh rate hike in the current cycle, bringing the rates to their highest level in 22 years. Powell’s Flexible Monetary Policy Federal Reserve Chairman, Powell, emphasized the need for flexibility in the central bank’s monetary policy. He stated that the options for September include either another rate hike or a pause, depending on the economic data at that time. This approach leaves the door open for further adjustments to counter inflation. Expert’s Opinion...
