The Federal Reserve (Fed), Central Bank of the United States, raised interest rates in the country by 0.5 percentage point, the biggest increase since 2000. With this, the target range will be between 0,75% and 1%. This is the second consecutive rate hike in the US, in an effort by the Fed to contain inflation in the country, which is at its lowest level in 40 years old.
A statement from the institution, released this Wednesday (4) after a meeting of the Federal Open Market Committee (FOMC), considers that the Russian invasion of Ukraine is “causing enormous human and economic”. “The implications for the US economy are highly uncertain”, assesses the Fed.
The note further says that “the invasion and related events are creating additional upward pressure on inflation and will likely weigh on economic activity. In addition, Covid-related lockdowns-05 in China are likely to exacerbate supply chain disruptions.”