The US Federal Reserve raised the base rate to 3-3.25% per annum

Federal Reserve System
©Collage / Shutterstock/Fotodom / Wikimedia Commons

Following the meeting in September, the US Federal Reserve System (FRS) raised the base interest rate by 75 basis points to the level of 3-3.25% per annum. This is the third increase in the base rate by the regulator by 75 basis points.

In a press release Fed on Wednesday, September 21, it is said that the Open Market Committee intends to achieve maximum employment and inflation at 2% in the long term. To do this, the committee decided to raise the target range for the federal funds rate to 3-3.25%.

It is reported that a further increase in the target range would be appropriate. The committee will also continue to reduce holdings of Treasuries, agency debt, and agency mortgage-backed securities.

In August 2022, it became known that the annual US inflation slowed down to 8.5% yoy (y/y). This is below the market forecast of 8.7% y/y. The slowdown was affected by the recession in the country, the decrease in the cost of gasoline and the increase in the interest rate.

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