US interest rates may increase more than anticipated.

The chairman of the US central bank has issued a warning that policymakers may hike interest rates more quickly and significantly than initially anticipated in an effort to stabilize the market.

US interest rates may increase more than anticipated.
US interest rates may increase more than anticipated.

 

Following the comments, which came just a few weeks before the bank is scheduled to make another rate announcement, US markets plummeted and the dollar increased.

Many analysts had anticipated an additional 0.25 percentage point rise.

But, the statements imply that the bank could act more forcefully.

The Fed increased its benchmark rate over the past year to above 4.5%, the highest level since 2007, in response to prices rising at the quickest rate in decades.

The US’s inflation rate, which measures how quickly prices rise, was 6.4% in January.

Mr. Powell said authorities have been concerned by recent data suggesting that momentum may be stagnating. While that is lower than it once was, it nevertheless remains far higher than the 2% rate considered healthy.

That, he claimed, might force the bank to increase rates above the 5% to 5.5% that officials had predicted in December.

Use your ← → (arrow) keys to browse

See also  Trump's wealth has decreased by $2 billion since the height of Truth Social's stock last month.

sikapa

Next Post

Meta examining ideas for a Twitter competitor

Sat Mar 11 , 2023
Facebook and Instagram’s parent company, Meta, is developing a separate, text-based social network app.   It might compete with Mastodon, Twitter’s decentralized rival. We’re investigating a standalone decentralized social network for exchanging text updates, a spokeswoman told the BBC. “We think there is a need for a dedicated area where […]
Meta examining ideas for a Twitter competitor