Federal Reserve Hikes Interest Rates by 0.5%, Biggest Increase Since 2000

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The United States Federal Reserve has increased interest rates by half a percentage point. Inflation is hitting the U.S. hard, and the central bank is looking at ways to stymie its effect on the country.

The United States Federal Reserve has raised interest rates by a half-point, as the country grapples with high levels of inflation. This rate hike is the largest since 2000, and the central bank had not raised the rate by more than a quarter-point since that year. It will also reduce its asset holdings, including Treasury securities and agency debt, and agency mortgage-backed securities.

Like many other countries, the U.S. is facing a high inflation rate that is gravely affecting average citizens. India, for instance, has also raised its repo rate by 40 bps to 4.4% to combat inflation.

The Consumer Price Index is at 8.55%, the highest it has been in decades. This index measures the weighted average price of consumer goods and services, including food and transportation.

Source: https://beincrypto.com/federal-reserve-hikes-interest-rates-by-0-5-biggest-increase-since-2000/