Status: 07/27/2022 8:17 p.m
The US Federal Reserve has again raised the key interest rate sharply by 0.75 percentage points – a further step in the fight against high inflation. The key interest rate is now in a range of 2.25 to 2.50 percent.
In view of the rampant inflation in the USA, the Federal Reserve (Fed) is once again daring to take an unusually large interest rate hike. It raised the key interest rate by three-quarters of a percentage point.
It had already pushed it up at the same pace in June, which has now reached a range of 2.25 to 2.50 percent. The currency watchdogs around Fed boss Jerome Powell assume that further increases should be appropriate.
Because of the high inflation, they are under pressure to raise the price of money as quickly as possible. Because of the sharp increase in the cost of food, rent and energy, many Americans have less in their wallets.
Inflation rate at 9.1 percent
The inflation rate was last at 9.1 percent – the highest level since late 1981. However, some experts fear that the Fed could be too aggressive in fighting inflation and thus stall the economy.
The economy had already started to plummet at the beginning of the year. For the data for US gross domestic product in the second quarter due on Thursday, experts expect a relatively meager plus of 0.5 percent extrapolated for the year.