The US Federal Reserve has increased the base rate by 75 basic points to 1.5-1.75%. Such a sharp increase has occurred for the first time since 1994, reports “Kommersant.”
The American regulator expects the rate to reach 3.4% by the end of 2022 and 3.8% by the end of 2023.
The Fed made this decision to combat high inflation rate. The regulator is “strongly committed” by the return of the indicator to the level of 2%.
The US Federal Reserve has increased the forecast for price growth in 2022 from 4.3% to 5.2%, and unemployment from 3.5% to 3.7%. The inflation forecast for 2023 was reduced from 2.7% to 2.6%, unemployment – increased from 3.5% to 3.9%.
The agency expects an increase in the US economy at 1.7% of the results of 2022 against previously previously 2.8%. Forecasts of 2023 and 2024 were also worsened: from 2.2% to 1.7% and from 2% to 1.9%, respectively.
Since the beginning of the year, the Fed has raised the rate three times, in total – by 150 basic points.