Mon. Sep 26th, 2022

WASHINGTON, September 21 (EFE).- The United States Federal Reserve (Fed) this Wednesday officially announced an interest rate hike of 0.75 points, the fifth increase since March and the third quarter of a point, in a renewed attempt to control inflation.

The US central bank met economists’ expectations and the official interest rate in the world’s largest economy now stands between 3% and 3.25%, the highest level in 14 years.

After two days of meetings, members of the Fed’s Federal Open Market Committee made the decision, which will be justified by Reserve President Jerome Powell at a press conference in the next few minutes.

Powell had already predicted last July, when he announced the previous hike, that another “abnormally large increase” in rates would likely occur in September, a prediction he reaffirmed in his latest public speech.

A measure to combat inflation

At various public events in recent weeks, he has emphasized the need for the Fed to continue a tight monetary policy to lower prices and prevent citizens from getting used to high inflation, which was 8.3% in August.

“We must now work frankly, forcefully, as we have been doing, and we must continue to do so until the work is done,” he said at a recent briefing.

The increase came a week after the release of the latest inflation data, which showed that, although the annual rate of CPI fell by two-tenths in August, to 8.3%, prices in monthly terms rose by one-tenth compared to July.

The data show that, for now, the Fed’s continued interest rate hikes since March are not yet having the desired effect on prices.

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