US Fed raises rates by 25 basis points

The results of the regular FOMC meeting did not come as a surprise to the markets. As expected, the decision was made to raise the rate by 25 bp. Now it is in the range from 0.25% to 0.5%. Only James Bullard voted against this decision. He spoke in favor of raising the rate by 50 bp at once. Committee members predict six more rate hikes this year. The US Federal Reserve indicated in a statement that the situation in the country’s economy is improving. Unemployment is falling, the number of jobs is growing rapidly. However, the imbalance between supply and demand remains. As a result, US inflation continues to rise. The Fed assured that it would strive to stop the rise in prices and achieve a reduction in inflation to 2%. Also, in the statement of the regulator, it is indicated about the intention to reduce the number of funds on the balance sheet. It was previously reported that he had already reached a whopping $9 trillion. The US Central Bank said it would closely monitor statistics and forecasts.

Source: xCritical.com