US Fed Interest Rate Hike: The US Federal Reserve has once again increased the benchmark interest rate by 75 basis points. To curb the ever-increasing inflation, it was decided by the US Fed to raise the interest rate for the third time in a row. Let us tell you that this decision was taken after reaching the record level of inflation in America after 1980.
Raised by 75 basis points
To reduce the ever-increasing inflation, the US Federal Reserve has increased the Fed rate (US Fed Rate Hike). Earlier in June, the US Fed made the biggest hike in 28 years. Even after the increase in June, the US Fed has increased once again due to inflation in the US. It was already being speculated by the experts that the Fed would again increase by 75 basis points.
The stock market welcomed the
US stock market’s major indices Nasdaq, Dow Jones and NYSE saw a rise after the increase made by the US Fed. The US market welcomed the decision of the US Fed. Apart from this, there is an increase in the rate of gold and silver in the commodity market. Crude oil was also seen trading at a brisk pace.
Inflation reached the top level
It was said by the Federal Open Market Committee that inflation is at the top level. Due to this, the benchmark rate, running from 1.5 percent to 1.75 percent, has been increased from 2.25 percent to 2.5 percent. Let us tell you that since March, the US Fed has increased interest rates by 225 basis points after inflation in America reached a record level in 40 years.