US central bank hikes rate by a quarter point
The US Federal Reserve is planning further hikes in its key rate to try to stem inflation.
The US Federal Reserve (Fed) opted for a moderate rate hike on Wednesday. its key rate, by a quarter of a percentage point, as expected, still concerned about inflation, and despite the turbulence in the banking sector, which is likely to “weigh” on the economy.
The decision was made unanimously. The Fed's main policy rate is now in a range of 4.75% to 5%, the highest level since 2006, and the institution plans further hikes.
The Fed anticipates inflation this year a little higher than it expected in December, at 3.6% against 3.5%, but GDP growth a little lower, at 0.4% against 0.5%.
The management of the central bank also warned on Wednesday, at the end of its meeting, that the recent banking crisis was likely […] to weigh on economic activity, hiring and inflation, noting that the magnitude of these effects is uncertain.
< p class="e-p">The powerful institution also reaffirmed in its press release that the American banking system is solid and resilient, and that its monetary policy committee remains attentive to the risks of inflation.
Fed Chairman Jerome Powell further assured that all savers' money in the United States is safe.