The US Federal Reserve Wants Another Big Take interest rate measures against rising inflation, According to the minutes of the most recent June meeting, policymakers are likely to justify a 0.5 or 0.75 percentage point increase at the end of July. At the June meeting, the Fed raised interest rates higher than they had been since 1994. It decided to increase by 0.75 percentage points from 1.50 to 1.75 percent.
Many leaders see a “significant risk” of higher inflation if the public is skeptical of the Fed’s resolution, according to the minutes. Inflation in the United States rose to an astonishing 8.6 percent in May – the highest level in more than 40 years. Federal Reserve Chairman Jerome Powell recently promised more rapid hikes before the US Congress. No order of magnitude is off the table, he said when asked whether interest rates could also be increased by a full percentage point.
Fed minutes do not explicitly mention recession risk. But most monetary watchers agree that economic risks are on the downside. In this context, he believes that the effect of hike in interest rates may be more than expected. Recently, investors on US stock exchanges have been concerned that aggressive interest rate hikes could stall the economy.
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