For the first time in about 30 years: US Federal Reserve jumps interest rate by 0.75%

The bank announced the sharpest US interest rate hike since 1994, in an attempt to curb rising inflation in the country. Just last weekend it was reported that the country's price index soared to more than 8%, a 41-year high.

The move comes in the shadow of growing criticism in the US and in an attempt to influence the wave of rising prices

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15/06/2022

Wednesday, 15 June 2022, 21:10 Updated: 21:30

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The Federal Reserve in the United States tonight (Wednesday, Israel time) raised the interest rate by three quarters of a percent.

The move comes in an attempt to curb rising inflation in a country that is affecting the cost of living and even fueling criticism against the Biden administration's economic policies.

The interest rate will be in the range of 1.5% -1.75%.

This is the largest interest rate hike since 1994, and it will affect millions of American businesses and households.

As with any interest rate hike, it will increase lending costs in a way that will force the U.S. economy to slow down.

The economic world expected the Federal Reserve to raise interest rates by only half a point.

However, after the US price index published over the weekend soared by more than 8% - this led to a decision.

Inflation in the US surprised everyone. The assumption was that it would slow down, maybe even fall a little - but it broke records of over 40 years. It left the Fed chairman, Jerome Powell, with no choice but to raise interest rates, the sharp rise Most since beginning a policy of curbing inflation.

The main criticism of Powell is that he should have started raising interest rates long before he actually did so but delayed, trying not to hurt President Joe Biden, who rewarded him by appointing him to another term, at the expense of the U.S. economy.

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