2023-05-03 14:06:16
The Federal Reserve of the United States prepares for raise interest rates a quarter point at the end of their two-day policy meeting on Wednesday despite the request of some legislators and economists to put a brake that allows the eweak banking sector balances itself.
The Fed It remains in his fight against inflation as their top priority, but even some central bank officials were more cautious about setting new hikes following the failure of three regional US banks in two months, including the First Republic Bank last Monday.
The Federal Reserve of the United States raised the interest rate again to curb its inflation
Another quarter point increase would set the benchmark federal funds rate at its highest level in more than 15 years. It would also be the tenth straight hike since the Fed started raising rates in March of last year.
The press conference of the president of the Federal Reserve, Jerome Powellthis afternoon, and the post-meeting announcement, will provide a preview of whether further hikes are likely in interest rates in the coming months; and about how the credit conditions have been configured in the seven weeks since the first bank failure.
The tightening of credit conditions helps the Fed curb demand to reduce inflation. In a context in which Federal Reserve officials have characterized the job market as one of the main sources of inflationary pressure.
The Federal Reserve of the United States increased the interest rate again
Data measuring US economic activity hthey have been uneven so faraccording to slogan Bloomberg. US GDP increased 1.1% annualized in the first quarter compared to the previous three months, a lower rate than in the previous two quarters, but surveys published by S&P Global showed that business activity picked up in April.
The Federal Reserve’s decision to raise interest rates comes at a time when some legislators and economists have called for caution due to the bankruptcy of the three banks mentioned above, which occurred within a period of two months.
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