The Fed raised interest rates by 75 basis points to beat inflation

In a recent announcement, the Federal Reserve (Fed) raised interest rates by 75 basis points. This choice demonstrates the Fed's serious efforts to combat rising inflation, which has reached 9.1 %, the highest on record in the past 40 years.

The central bank announced this at Wednesday's meeting of the Federal Free Market Committee. US interest rates are now hovering between 2.25 percent and 2.5 percent after a 0.75 percent increase, the highest level since the start of the COVID-19 pandemic.

You might be interested in: 7 FAVORITE WAYS TO BUY A BITCOIN CARD IN 2022

The Fed's decision to suppress rising inflation

Some of the main contributors to soaring inflation are housing, food and fuel prices. As more Americans voice their concerns about rising costs, the Fed has made its latest move. A recent CNBC poll found that 96 % people are concerned about rising food, gas and housing prices. However, the expected increase in interest rates, as speculated by the central bank, was 100 basis points.

"Inflation has obviously surprised over the past year, and more surprises may follow. The central bank would consider further hikes if needed in the future," Federal Reserve Chairman Jerome Powell said.

The government also expects a recession to come soon, which may hit global markets soon. As expected, the crypto market reacted positively to the news. At the time of writing, Bitcoin and Ethereum have received 8.87 % and 16.2 % respectively.

Interesting events for our readers

Binance

Trade with up to 60% off fees and a $600 bonus

Open an account Review

Phemex

Free bonus up to $ 2,500 upon registration and deposit

Open an account Review

Bybit

Free bonus up to 3650 USD after registration and deposit

Open an account Review

All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.