The head of the FED, Jerome Powell and a new rate hike. Photo by Reuters
The US Federal Reserve (Fed) announced a rate hike on Wednesday official interest rate of 0.75 pointsthe second in the last two months, to try to curb uncontrolled inflation.
With this increase, which is the fourth since the Fed began raising rates in March, the official interest rate of the world’s largest economy now stands at a range of 2.25.
“Recent spending (consumption) and production indicators are moderate. But job creation has remained robust in recent months and the unemployment rate remains low,” summarized the central bank announcing its interest rate decision. , in a statement released at the end of its Monetary Policy Committee (FOMC) meeting which began on Tuesday.
In an official statement released after their two-day meeting, the Federal Reserve System Board of Governors reiterated plans to make further rate hikes in the future.
The New York Stock Exchange, attentive to the FED. Photo by Reuters
Increase of 0.75 points in the official rate not seen since 1994when, under the leadership of historian Alan Greenspan, the US central bank carried out a series of rate hikes to try to prevent a rampant rise in inflation.
Inflation
At that time, the annual rate of increase in consumer prices was 2.7%, while in the past June stood at 9.1%something not seen for 40 years.
Used cars for sale in the United States, with high prices. AP photo
“The committee is strongly committed to the goal of bringing inflation back to 2%”, said the US central bank, always maintaining “the maximum levels of employment”.
In this sense, the office highlighted that, although it is true that some recent spending and production indicators have attenuated, job creation remains robust.
On the other hand, the Fed has insisted that it will continue to reduce its US government public debt portfolio, which is mainly composed of Treasury bills and mortgage-backed securities.
Currently, the central bank accumulates nearly $ 9 trillion of US debt.
Treasure letters
As in previous months, the Fed divested in August $ 30 billion in treasury bills and $ 17.5 billion in mortgage-backed securities.
Starting in September, these monthly figures will rise to $ 60 billion and $ 35 billion, respectively, and the process will end when levels deemed “slightly higher” than what the bank considers “large reserves,” according to the plan, are reached. released by the Fed in May.
Source: AFP and EFE
PB
Source: Clarin
