At a regular meeting held on the 15th and 16th, the US Federal Open Market Committee (FOMC) decided to raise the policy interest rate by 0.25 points, suggesting that it will raise the interest rate by the same range six more times this year. Although the risk to economic growth is increasing, it will start a rate hike cycle to cope with the highest inflation in 40 years.
The FOMC has decided to raise the federal funds rate guidance target to 0.25-0.5% with 8 in favor and 1 once morest. The rate hike will be the first since 2018. Opposed by St. Louis Federal Reserve Bank of St. Louis Governor Bullard, who insisted on a 0.5-point rate hike.
Original title:Fed Lifts Rates a Quarter Point in Opening Bid to Curb Inflation(excerpt)