US Fed Announces Biggest Interest Rate Hike In Two Decades

Rates to touch 2.9% by 2023. Seven more hikes are expected this year.

The Federal Reserve, on Wednesday, announced the sharpest rise in interest rates in over two decades. The move was a bid to combat the soaring inflation in the US.

There was a 0.5 percentage point increase in interest rates. It is a follow-up to the .25 percentage hike in March, the first hike in rates since December 2018. The Fed has increased the interest rate to a target rate range between .75% and 1%.

The Economist Intelligence Unit predicts interest rates to touch 2.9% by 2023, through seven gradual hikes this year. Officials are also planning to cut down their $9trillion asset portfolio which will further aggravate borrowing costs.

The Federal Reserve pointed out that the war in Ukraine and recent lockdowns in Chinese cities created an atmosphere of uncertainty and a disruption in supply chains.

US Fed announces biggest interest rate hike in two decades.

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The ship was making her way steadily through small waves which slapped her and then fizzled like effervescing water, leaving a little border of bubbles and foam on either side. The colourless October sky above was thinly clouded as if by the trail of wood-fire smoke, and the air was wonderfully salt and brisk. Indeed it was too cold to stand still. Mrs. Ambrose drew her arm within her husband’s, and as they moved off it could be seen from the way in which her sloping cheek turned up to his that she had something private to communicate.

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