Federal Reserve Adds Another 25 Basis Points, Bringing US Interest Rate To 5%

The Federal Reserve announced on Wednesday that it raised the interest rate for another 25 basis points, bringing it to a peak of 5%

WASHINGTON (UrduPoint News / Sputnik - 22nd March, 2023) The Federal Reserve announced on Wednesday that it raised the interest rate for another 25 basis points, bringing it to a peak of 5%.

"The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run," the Fed said, referring to its Federal Open Market Committee (FOMC).

The Fed has added 450 basis points to the interest rate over the past year to bring under control inflation that hit four-decade highs of more than 9% per year in the aftermath of the coronavirus pandemic measures. The central bank has said it aims to bring inflation back to its long-standing target of 2%.

"In support of these goals, the Committee decided to raise the target range for the federal funds rate to 4-3/4 to 5 percent," the Fed said, adding that it expected "additional policy firming" as appropriate to achieve its goal on inflation.