• The ECB raises interest rates another 0.75% and places them at their highest level since 2009: "Inflation is still too high"

The

United States Federal Reserve

(the Fed, its central bank) announced this Wednesday a

new increase in interest rates of 0.75 percentage points

to leave them in the

range between 3.75% and 4%,

in which has been the

sixth increase

so far this year.

After learning about the increase agreed at this monetary policy meeting, which ended this Wednesday, the market will closely follow the

press conference

that

Jerome Powell, its president,

will give today, in which it is expected that he will give clues as to whether

this rate of hikes

at the

December

meeting to try to contain

inflation

or if the Fed will slow down the tightening of financing conditions a bit with a 50 basis point hike at the next meeting.

The US central bank has made the move that the market priced in, leaving the official interest rate at its

highest level since 2017.

"

The Committee seeks to achieve maximum employment and inflation at a rate of 2% over the long term

. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 3.75% to 4%. The The Committee anticipates that continued increases in the range will be appropriate to achieve a monetary policy stance that is tight enough to return inflation to 2%," the Fed said in its statement.

Looking ahead to the coming months, the central bank will take into account "the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments."

In addition, the Committee will continue to

reduce its balance.

Conforms to The Trust Project criteria

Know more

  • Inflation