Fight against inflation: US Federal Reserve raises interest rates by a further 0.25 percentage points

As expected, the US Federal Reserve has slowed the rate of hikes.

The federal funds rate rose 0.25 percentage point and is now in a range of 4.50 to 4.75 percent, the Fed said after its interest rate meeting in Washington on Wednesday.

Analysts had largely expected this step.

It is the eighth rate hike in a row.

In December, the Fed raised interest rates by 0.50 points.

Previously, it had raised the key interest rate four times in a row by 0.75 percentage points.

At the beginning of March 2022, it was still in a range of 0.0 to 0.25 percent.

The Fed is trying to fight the still high inflation with its rate hikes.

In December, the inflation rate in the US fell to 6.5 percent.

The Fed is targeting a rate of just 2 percent.

Europe's stock markets defied nervousness ahead of major monetary policy events on Wednesday.

While investors in New York tended to sell in anticipation of the US Federal Reserve's interest rate decision due at 8 p.m. (CET), the most important European stock indices closed mixed, but little changed.

The interest rate decisions by the European Central Bank (ECB) and the Bank of England on Thursday afternoon are even more important for local investors than the Fed decision.