US Fed raises interest rates

WASHINGTON. There Federal Reserve (fed) of UNITED STATES lifted the interest rate by a quarter of a percentage point (25 basis points), but signaled that it was poised to halt further increases in borrowing costs amid recent turmoil in financial markets following the collapse of two American banks.

The U.S. central bank’s benchmark overnight interest rate was set in the 4.75-5.00% range, with updated projections showing that 10 of 18 officials on the Bank’s policy committee The Fed expects rates to rise another quarter of a percentage point (25 basis points) by the end of this year, the same as in the December forecast.

However, in a key shift spurred by this month’s flash bankruptcies of Silicon Valley Bank (SVB) and Signature Bank, the Fed’s latest policy statement no longer says anything but “continued rate hikes.” is likely to be appropriate. .

The wording has appeared on every statement since the March 16, 2022 decision to start the rate hike cycle.

The president of the fedChairman Jerome Powell opened his press briefing after the meeting trying to reassure depositors, consumers and businesses about the soundness of the system after the series of actions the central bank and other regulators have taken over the past two last weeks.

“These actions show that the savings of all depositors in the banking system are safe,” he said.

The boss of the fed He commented that officials “stand ready to use all of our tools as needed to keep him safe and sound.”

Author: Write the digital herald
Source: El Heraldo De Mexico