US Fed indicates a halt in rate increases

Minutes of US Federal Reserves latest monetary policy review meeting showed that a slowing in the pace of policy increases would likely be timely . It increased the main policy rate by 75 basis points to over a decade high of 3.75-4.0%.

Washington, United States, November 24 : The minutes of the US Federal Reserve's latest monetary policy review meeting showed that a slowing in the pace of policy increases would likely be timely, according to the minutes published on Wednesday (local time).The minutes show that a few observers said that slowing the pace of policy increases could reduce the likelihood of instability in the financial system.It increased the main policy rate by 75 basis points to over a decade high of 3.75-4.0%.This was the fourth rate increase in a row.Raising interest rates are a monetary policy measure that tends to reduce demand in the economy, leading to higher food and energy costs, as well as wider price pressures.Inflation in the United States remains high, reflecting supply and demand imbalances attributed to the pandemic, higher food and energy prices, and greater price volatility.The aim of US central banks has been to achieve maximum employment and inflation rates of 2% on the long run.

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