2023-10-08 16:42:19
The global economy emerged from the Corona crisis with a significant increase in inflation rates as a result of the financial support provided by the United States of America government to support its citizens during the forced closure, in addition to the Russian-Ukrainian war, whose burdens translated into an increase in the prices of basic commodities such as energy and food, in addition to a significant increase in inflation rates. Central banks resorted to raising interest levels, which resulted in a rise in debt rates and a collapse in global stock markets. In light of this difficult environment, investors in the world do not have high hopes that economic conditions will improve during the coming period, as current indicators tell us that there are many risks lurking in the global economy.
As a result of these crises, the US Federal Reserve resorted to raising interest rates successively since 2020 to reduce inflation, but with the decline in inflation rates, the US Federal Reserve recently decided to stabilize interest rates in a range ranging from 5.25% to 5.5% at the highest level in 22 years, stressing that the committee The Fed seeks to maximize employment and inflation at 2 percent in the long run.
The Fed said that the US banking system is sound and resilient, and tightening credit conditions for households and businesses will likely affect economic activity, employment and inflation.
Federal Reserve Chairman Jerome Powell confirmed that inflation rates are still higher than the target level of 2%, and that reducing it will require a long time, indicating the Federal Reserve’s readiness to raise interest rates when needed.
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