“Recent indicators of spending and output have slowed,” the Fed’s statement said
THE US central bank (Fed) announced today another 75 basis points increase in its key interest rates – between 2.25% and 2.50% – as part of its efforts to tame inflation.
“Recent spending and production indicators have slowed. However, job creation has remained strong in recent months and the unemployment rate remains low,” the Fed said in a statement released after the committee’s meeting.
This is the fourth consecutive rate hike by the Fed: +0.25% in March, +0.25% in May, +0.75% in June (the most aggressive increase since 1994) and +0.75% today.
The decision was taken unanimously by the 12 members of the monetary committee, who left open the possibility of further increases in the near future.
The US central bank, which usually raises interest rates by 25 basis points, again made an aggressive move to tame inflation that hit a new 40-year high (9.1%) in June.
Some economic analysts, however, do not hide their concern that the economic slowdown may turn out to be stronger than expected, which could weigh on the labor market or even push the world’s largest economy into recession.
RES-EMP
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