The Federal Reserve (the Central Bank of America) raised interest rates by 0.75% Wednesday, in a violent move in order to try to curb the inflation that swept the body of the American economy, angering consumers and stifling the Biden administration.
This is the highest rise in interest rates since 1994, and it will affect millions of companies and individuals in America, as it will contribute to raising the price of home, car and other loans, in order to mitigate the pace of economic acceleration.
Until this week, economists and investors had expected the central bank to raise the interest rate by half a point for the second time in 22 years, but the disastrous inflation report that the country recorded on Friday revealed that price increases are increasing in all aspects of the economy, and as a result expectations have increased for a more dramatic rise in the price of Benefit.
Americans are suffering from rising food prices in addition to fuel prices, at a time when the Federal Reserve finds itself required to maintain price stability.
The rise in commodity and fuel prices led to the lowest levels of consumer confidence since 1952.
Source: CNN