Fed raises interest rates by 75 bps

Federal Reserve Chair Jerome Powell already announced at the last meeting of the Federal Open Market Committee on July 27 that a further increase would be appropriate due to inflation.

JUST IN: 🇺🇸 Federal Reserve Chair Jerome Powell says #inflation is too high and another unusually large rate increase could be appropriate at next meeting.

— BTCATH (@btcathcom) July 27, 2022

This announcement has now become true. The Federal Open Market Committee also explained its decision with the consequences of Russia’s war in Ukraine and rising energy prices, which additionally affect inflation and the world economy:

Russia’s war against Ukraine is causing tremendous human and economic hardship. The war and related events are creating additional upward pressure on inflation and are weighing on global economic activity. The Committee is highly attentive to inflation risks.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 3 to 3-1/4 percent and anticipates that ongoing increases in the target range will be appropriate.