US Fed raises interest rates by 75 bps in face of inflation

CAIRO - 21 September 2022: The Federal Open Market Committee (FOMC) announced on Wednesday raising its key interest rates by 75 basis points (bps) in an effort to combat the decades-high inflation.

This is the third time in a row for Fed to raise interest rates against the background of its struggle with the US soaring inflation due to the Ukraine crisis and its impacts on world economies.

Federal Reserve officials forecast they would reach 4.6% in 2023, stepping up their fight to curb inflation that’s persisted near the highest levels since the 1980s, US magazine Fortune reported.

In a statement Wednesday following a two-day meeting in Washington, the Federal Open Market Committee repeated that it “is highly attentive to inflation risks.”

The central bank also reiterated it “anticipates that ongoing increases in the target range will be appropriate,” and “is strongly committed to returning inflation to its 2% objective.”

MENA contributed to the reporting.