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Interest rates in the US have reached a maximum in the fight against inflation

WASHINGTON. KAZINFORM – The US Central Bank raised interest rates to the highest level in the last 15 years in an attempt to reduce the rapid growth of prices in the world’s largest economy, Kazinform correspondent reports referring to BBC News.

The Federal Reserve announced another 0.75 percentage point increase in its key rate, raising its target range to 3% – 3.25%.

This is the fifth rate increase the Fed is charging banks for borrowing, from near zero at the beginning of the year to 3% for the first time since early 2008.

The move comes despite growing concerns that the fight against inflation could lead to a sharp economic downturn.

Forecasts released by the Fed show that US growth will slow to 0.2% and the unemployment rate will rise to 4.4%.

By raising the cost of borrowing for businesses and households, central banks intend to reduce the demand for high-value goods such as cars, houses, or business expansion, which should ease pressure on the economy to push prices up.

Forecasts released by the Fed on Wednesday show that the interest rate will reach 4.4% by the end of the year and continue to rise in 2023, sharply higher than previous forecasts.

Analysts are starting to worry that global rate hikes, which are reflected in society in the form of more expensive mortgage loans and debts credit cards, could lead to a larger slowdown in economic growth than policymakers expect.

Photo: www.bbc.com

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