The latest quarter-percentage-point rise, which was in line with analysts' expectations, is the Fed's 11th since it began an aggressive campaign of monetary tightening last March in response to rising prices.
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00:00 The United States Federal Reserve has raised interest rates to a 22-year high
00:05 as it continues its fight against rising inflation.
00:08 The decision to increase rates by a quarter percentage point to a range of 5.25 to 5.5
00:14 percent comes after the Fed paused its rate-raising cycle last month.
00:20 It marks the 11th increase since early 2022, when the Fed started raising borrowing costs
00:27 to try to cool the economy and to ease rising prices.
00:31 Restoring price stability is essential to set the stage for achieving maximum employment
00:36 and stable prices over the longer run.
00:38 To conclude, we understand that our actions affect communities,
00:42 families and businesses across the country.
00:44 Everything we do is in service to our public mission.
00:48 We at the Fed will do everything we can to achieve our maximum employment
00:52 and price stability goals.
00:54 The US economy has remained robust despite the 11 rate rises the Fed has now implemented,
01:00 its most aggressive rate-raising cycle in 40 years.
01:04 Hiring has slowed but remained strong,
01:07 and the unemployment rate is still close to a record low.
01:10 The Fed's hike comes ahead of a similar meeting of the European Central Bank,
01:15 which is under pressure to signal an end to interest rate rises.
01:20 Eurozone banks have reported a sharp fall in demand for business loans
01:25 to its lowest level on record, likewise with home loan demand.
01:29 However, the ECB remains determined to bring inflation back down to its 2% target,
01:36 and that means a rate rise is still on the cards.