The U.S. Federal Reserve raised its benchmark rate by 25 basis points.
The U.S. Federal Reserve raised the benchmark interest rate by 25 basis points, the regulator said.
Thus, the rate remains at the maximum level for the last 22 years.
At the same time, the Fed considers its further increase appropriate. The regulator will take into account the tightening of monetary policy, its backwardation, as well as economic and financial developments.
The United States Central Bank intends to achieve maximum employment in the economy and the inflation target of 2% in the future.
At the end of the July meeting, the Fed noted that it would continue to reduce assets on its balance sheet, according to the May 2022 plan. According to it, the reduction began on June 1 last year - the first three months by $47.5 billion a month, then by $95 billion.
At the end of the June meeting, the regulator kept the benchmark rate at 5-5.25% per annum, interrupting the period of increase. The Fed believes that the pause will help evaluate additional macroeconomic information and its impact on monetary policy. Previously, the regulator has continuously raised the rate since March 2022 to fight inflation.