Fed Approves Interest Rate Increase

By Staff Writer February 02, 2023

The Federal Reserve decided to raise the target range for the federal funds rate by 0.25%, after a 0.50% increase in December and a 0.75% increase in November.

The Federal Open Market Committee in its statement Feb. 1, reported, “Recent indicators point to modest growth in spending and production. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation has eased somewhat but remains elevated.

“Russia’s war against Ukraine is causing tremendous human and economic hardship and is contributing to elevated global uncertainty. The committee is highly attentive to inflation risks.

The committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run…The committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.

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Last modified on Friday, 03 February 2023 13:08