The US Federal Reserve made its tenth decision, raising interest rates by a quarter of a percentage point, which was widely expected. The Federal Reserve started raising interest rates in March of last year with the aim of containing inflation, but the inflation rate is still well above the 2% target level.
The US Federal Reserve raised interest rates for the tenth time in a row on Wednesday, indicating at the same time a tendency to soften its future steps, against the backdrop of indications of an economic slowdown in the United States.
Federal Reserve Chairman Jerome Powell said in a press conference after the release of the statement that the bank still believes that inflation is too high and added that it is too early to say that the cycle of interest rate hikes is over.
The Federal Reserve started raising interest rates in March of last year with the aim of containing inflation, but the inflation rate is still well above the 2% target level.
On Wednesday, the Federal Reserve raised the interest rate by a quarter of a percentage point, bringing the interest rate between 5.0% and 5.25%, according to a statement by the US Central Bank, which was likely to ease the tightening of lending conditions for households and companies, which weighed on the economy.
The recent decision of the Federal Open Market Committee was in line with expectations, while experts and traders closely monitor any change in future trends.
In its statement, the Fed announced that it will “take into account the accumulated tightening of monetary policy” and the negative effects of this policy on the economy in its future decisions.
This marks a shift from the statement made when the Fed raised interest rates last time, when it indicated that “further tightening” might be necessary to contain inflation.
This is an indication that the Federal Reserve is in the process of softening its views.