This is the tenth consecutive increase approved by the Federal Reserve since last year, as the US central bank seeks to rein in inflation, which in 2022 hit its highest level in about 4 decades.
And the Fed said in a statement Wednesday that economic activities in the world’s largest economy grew at a “moderate pace” in the first quarter of this year.
The Fed also confirmed that the banking system in the United States is “sound and resilient”.
In its statement, the US Federal Reserve did not indicate the need to continue raising interest rates, which means that this could open the door to stopping the process of raising interest rates, but it did made it clear that the tightening of monetary policy will depend on the given economic conditions.
The annual inflation rate in the United States fell last March to 5%, the lowest level since May 2021.
On a monthly basis, the CPI rose 0.1% in March, better than estimates of a 0.2% rise, after rising 0.4% in February.
As for the core inflation rate, which excludes energy and food price volatility, it rose slightly in March to 5.6% year-on-year, as expected, from 5.5% in February. .
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