The Fed raises rates by 0.75%: the cost of money at its highest since 2008. Powell: “Strongly committed to reducing inflation”

MILAN – There Fed raises the monetary policy wall again to counter the rush ofinflation. The US central bank raised interest rates by 0.75%, bringing the cost of money in a range between 3% and 3.25%, the highest since 2008. This is the fifth rate hike since the beginning of the year. ‘year and the third consecutive 75 basis points (the cost of borrowing rose by a quarter of a point in March and by half a point in May). The current interest rate hikes, the Fed explained, are appropriate, adding that inflation remains high. At the same time, the central bank clarified, new hikes are “opportune” to bring inflation back to 2%. According to estimates by members of the FOMC, the Fed’s monetary policy committee, interest rates in the United States will average at the end of 2022 at 4.4%, significantly higher than the estimate of 3.4% in June and at 4 , 6% in 2023. “We are strongly committed to reducing inflation,” said Fed Chairman Jerome Powell at a press conference. Price stability, he added, is the “foundation” of stable growth.

Fragile economies, the diabolical mix between inflation and superdollar

by Eugenio Occorsio

The US central bank also revised growth for 2022 downwards, when US GDP is expected to grow by 0.2%. The economy is expected to grow by 1.2% in 2023, 1.7% in 2024 and 1.8% in 2025. The unemployment rate is expected this year at 3.8% and at 4 , 4% in 2023.

The reaction on the markets: the dollar is running, Wall Street is negative

On the markets, the Fed’s new move pushes the dollar further, although there was also an even more robust rise on the table, with the euro slipping to $ 0.9830. Wall Street turned negative with the Dow Jones losing 0.25%, the S&P 500 0.21% and the Nasdaq 0.41%.

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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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