she warns that the war in Ukraine and the lockdowns in China will worsen inflation and logistical problems. (Photo: 123RF)
WASHINGTON — The U.S. central bank (Fed) raised its key interest rates by half a percentage point on Wednesday, the first hike of this magnitude since 2000, in an attempt to control record inflation and signaled that further hikes “would be justified” in the future.
Key rates are now in a range of 0.75% and 1%, according to a statement. In addition, the Federal Reserve will begin to reduce its balance sheet as of June 1, another monetary tightening tool to temper inflationary pressure. Finally, she warns that the war in Ukraine and the confinements in China will aggravate inflation and the problems of logistics.
