US Unemployment, Inflation Hit a 16-Year Record High
TEHRAN (Tasnim) – The US Federal Reserve in reaction to the growing inflation and unemployment rates increased the interest rate, as the inflation rate in the country hit a 16-year high.
The Federal Reserve raised interest rates for a 10th time in a row on Wednesday, but this might be the last rate hike of the cycle.
A change in the central bank's policy statement suggested that it could at long last pause its tightening campaign at the next Fed meeting.
The central bank's rate-setting group, known as the Federal Open Market Committee (FOMC), wrapped up its regularly scheduled two-day meeting by increasing the short-term federal funds rate by 25 basis points, or 0.25%, to a target range of 5.0%-5.25%.
Importantly, the central bank omitted prior language from its policy statement saying "some additional policy firming" may be warranted. Experts say the change suggests the FOMC could pause raising rates when it next meets in June.
The sudden and shocking collapses of Silicon Valley Bank, Signature Bank, Credit Suisse and First Republic Bank led to calls for the Fed to stop raising interest rates, lest they cause further damage to the financial sector, Kiplinger reported.
After the increase of interest rate in this country, Governor of US Federal Reserve Jerome H. Powell said that economic stability is one of the main tasks of the bank and with the interest rate hike, the bank is pursuing economic stability.
