US Federal Reserve hikes interest rates by 25 basis points, to 22-year all-time high

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In the meeting of the US Federal Reserve (US Federal Reserve), once again a big decision is taken, the interest rates have been increased. With which he has reached the all-time high level of 22 years. At the FOMC meeting, the benchmark lending rate was hiked by 25 basis points to a range of 5.25-5.50.

Decision taken to increase interest rate in 11 out of 12 seats

Earlier in 2001, the Fed's interest rates came close to this level and since 2001 they are now at this all-time high level. The US Federal Reserve has decided to deal with rising inflation in the country. Economists were already predicting that the Federal Reserve would raise interest rates once again this time, and that's exactly what happened. This was the 12th meeting of the Federal Reserve out of which the benchmark lending rates have been increased in a total of 11 meetings. The US Fed has raised interest rates in 11 of the 12 meetings since March 2022 last year.

The hint was given in the meeting held in June

Just last year, the US Fed started a streak of interest rate hikes and such a decision is being taken to tighten the monetary policy here. The Federal Open Market Committee (FOMC), which sets interest rates, had already hinted at this at its June 2023 meeting, and rates did not rise at that time.

How long will interest rates continue to rise?

Federal Reserve Chairman Jerome Powell said after the two-day meeting that the US Federal Reserve will continue to raise interest rates until the US inflation rate falls within its pre-set 2 percent target.