The Federal Reserve on Wednesday announced a 25-basis point rate hike for February, its smallest increase in almost a year as cooling inflation allowed the US central bank to slow its previously aggressive monetary tightening aimed at curbing the worst price pressures in four decades
WASHINGTON (Pakistan Point News / Sputnik - 02nd February, 2023) The Federal Reserve on Wednesday announced a 25-basis point rate hike for February, its smallest increase in almost a year as cooling inflation allowed the US central bank to slow its previously aggressive monetary tightening aimed at curbing the worst price pressures in four decades.
"The Committee decided to raise the target range for the federal funds rate to 4-1/2 to 4-3/4 percent," the Federal Open Market Committee said in its monthly policy statement.
The increase matched the March 2022 hike of 25 basis points as the Fed began raising rates to counter runaway triggered by the trillions of dollars of government spending to fight the coronavirus pandemic. After a 50-basis point hike that followed the one in March, the central bank embarked on four jumbo-sized 75-basis point increases between June and November, before returning to a 50-basis point hike in December after a visible retreat in inflation.
