US Fed Reserves: To combat inflation, the Fed Reserve has once again increased its policy rate. On Wednesday, the Fed Reserve Bank has increased by 25 basis points or 0.25 percent. With this increase, the Fed rate in the US has gone up to a 16-year high.
After this increase from the Fed Reserve, it has been said that there will be no further increase. Rates have been increased for the 10th time in a row by the Fed. The Federal Open Market Committee said in its statement on Wednesday that the committee will closely monitor incoming information and assess the impact of monetary policy.
banking system strong
After the policy meeting, Fed Reserve Chairman Jerome Powell said that the banking system remains strong and resilient. However, due to the upheaval in the financial system, the pace of both spending and growth may slow down. With this move of the Fed Reserve, the loan will become more expensive.
How much is the Fed Reserve’s interest
Fed Reserve Bank has been increasing the rate of Fed Reserve Bank continuously for the last 14 months. With this increase, interest rates ranging from auto loans to credit card borrowings and business loans have doubled. Before this increase from the Federal Reserve, the interest was 5 percent and now it has become 5.25 percent. This is the highest level since 2007.
Reduced job opportunities, more retrenchments
On Tuesday, a monthly report from the Labor Department was released that showed job openings fell and layoffs increased in March. This indicates that the job market will feel the impact. Still rising unemployment prospects are ringing alarm bells in Washington.
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