United States Federal Reserve Bank has raised interest rate by 0.75 percent, the highest increase since 1994.Control TV reports that officials agreed to a 0.75 percentage-point rate rise at their two-day policy meeting that was concluded on Wednesday.
READ ALSO: JUST IN: Senate Confirms Ariwoola As CJN
The Fed’s benchmark federal-funds rate will also increase to a range between 1.5% and 1.75%.
The Reserve Bank is ramping up its drive to tighten credit and slow growth with inflation having reached a four-decade high of 8.6 per cent, spreading to more areas of the economy and showing no sign of slowing.
Americans are also starting to expect high inflation to last longer than they had before. This sentiment could embed inflationary psychology in the economy that would make it harder to bring inflation back to the Fed’s 2 per cent target.
(C)ControlTV2022.
