NNA – The US Federal Reserve raised the main interest rate by half a percentage point on Wednesday, but warned that the time has not yet come to stop these increases, estimating that interest will exceed five percent, according to “AFP”.
The reserve said in a statement following its meeting that the basic interest rate now ranged between 4.25 and 4.50 percent, which is the highest level since 2007.
This increase is less than the institution decided on four previous occasions this year when it raised interest rates by 0.75 percentage point, but it is still a sharp jump.
He also stated that inflation will slow to only 3.1 percent in 2023, while significantly reducing growth expectations for 2023 from 1.2 to 0.5 percent, which means avoiding a contraction of the economy.
It takes time for monetary policy to affect various sectors, but positive signs have emerged recently, with the US consumer price index falling in November.
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