US Federal Reserve Reduced Discount Rate To 4.25-4.50%

The US Federal Reserve (Fed) of the United States reduced the accounting rate by 25 basic points to 4.25-4.50 percent.

The Fed’s statement says that the decision was made 11 votes against 1. Bet Hammak advocated preserving the bet at the same level and voted against.

According to this information, it was decided to reduce the target rate of the rate on federal funds by 25 basic points to 4.25-4.50 percent to support the target indicators of the bank.

– the Fed reduced interest rates at 3 meetings in a row

In March 2020, the Fed reduced the interest rate to the range of 0-0.25 percent and went to mitigate the monetary policy amid concern about the economic consequences of the outbreak of a new type of coronavirus (Covid-19).

the Fed, which began an increase in interest rates after the completion of the operation to purchase assets in 2022 in conditions of growing inflation in the country, since March 2022 conducted 11 percentage increase and increased it by a total of 525 basic points. As a result of these increase, the bank accounting rate increased to 5.25-5.50 percent, which is the highest rate since 2001.

The Fed last time raised the rate by 25 basic points in July 2023, leaving the interest rate unchanged for 8 meetings in a row.

In September, the Fed first in 4 years reduced the interest rate by 50 basic points. In November, the Fed reduced the rate by 25 basic points. With the last decision, the bank reduces the interest rates already 3 meetings in a row.

In November, inflation in the United States amounted to 2.7 percent in annual calculus, after in June 2022 it reached the highest level since 1981 – 9 percent in annual calculus.