New Fed maxi hike, US rates rise by 0.75%. At the highest levels since 2008 – Economy

Fed raises interest rates by 0.75%. The cost of money thus rises in a fork between 3.75% and 4%. This is the fourth consecutive 75 basis point hike for the US central bank in its fight against inflation and the sixth rate hike since the beginning of the year. (four hikes from 75 basis points, a quarter point in March and half a point in May).

With the fourth consecutive hike of 0.75%, the Fed takes interest rates to their highest levels since 2008. The Central Bank “anticipates that the current hikes will be appropriate to achieve a sufficiently tight monetary policy to bring inflation back to 2%,” says the Fed, stressing that “determining future hikes will take into account the overall tightening of monetary policy,” the delays with which monetary policy affects economic activity and inflation and economic and financial developments “.

The Fed will continue with interest rate hikes until they are in “sufficiently” restrictive territory. This was stated by the Fed at the end of the two days, noting that inflation remains high.

“The Fed is an independent agency and the president believes it has the best monetary policies to deal with inflation.” White House spokeswoman Karine Jean-Pierre said this in a press briefing about the Federal Reserve’s decisions to raise interest rates.

Wall Street accelerates with the Fed, reading in the final release indications on a possible slowdown in the speed of rate hikes. The Dow Jones rose 0.93% to 32,970.76 points, the Nasdaq advanced 0.48% to 10,950.02 points while the S&P 500 posted a 0.56% gain to 3,877.87 points.

“We are very determined to bring inflation back to 2% and we have the tools to do so.” This was stated by the president of the Fed Jerome Powell, emphasizing that price stability is the foundation of the economy. “We need to see inflation drop significantly.” Powell points out that a slowdown in the rate of rises is approaching, “it could be at the next meeting or the one after” The US economy has slowed significantly since last year and indicators point to modest growth in the fourth quarter.

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About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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