US Federal Reserve announces decision on interest rate issue

Created: 2022-01-26Updated: 2022-01-26, 8:12 p.m

The US Federal Reserve announced its decision on interest rate policy on Wednesday evening.

© Anna Moneymaker/AFP

The US Federal Reserve's decision on interest rate policy on Wednesday evening was eagerly awaited.

The key interest rate is to be increased again soon.

Washington DC - The US Federal Reserve (Fed) is leaving interest rates in the extremely low range of 0.0 to 0.25 percent for the time being.

The Central Bank Council decided on Wednesday.

At the same time, however, an imminent interest rate hike was announced.

In view of the high inflation rate and the good situation on the labor market, it will "soon be appropriate" to raise the key interest rate, the central bank announced on Wednesday.

Analysts are already expecting the first interest rate hike since the beginning of the corona pandemic at the next meeting in March.

The Fed is committed to the goals of price stability and full employment.

The labor market is developing very positively, but inflation is forcing the Fed to take countermeasures.

An increase in the key interest rate would curb inflation, but also dampen the economy.

US consumer prices rose 7 percent in December, the highest in decades.

Further information will follow shortly