Fed Announces Biggest Interest Rate Hike in Decades to Fight Inflation 

Fed Announces Biggest Interest Rate Hike in Decades to Fight Inflation 

Share Post:

As of May 2022, the US annual inflation rate unexpectedly rises to 8.6%, the highest since 1981, an event that saw the Federal Reserve Chairman, Jerome Powell, vouched to do whatever it takes to fight the inflation.

However, on Wednesday, the Federal Reserve announced that it has raised the interest rate by 0.75% in its effort to combat the incessant rise in prices of goods and services in the United States. This rate is the largest move by the Fed in a single meeting since 1981.

Amidst the recent crypto market condition coupled with incessant global inflation, it is important that you stay healthy, this is why we have a VIP membership on Binance, Bybit, and Kucoin exchanges, and out of concern for folks in the crypto space regarding the recent market condition.

MyCryptoParadise will be offering a 20% discount for you; use PRO20% as your promo code, long or short, it is a win-win with us, hurry now as this promo will soon be expiring.

See reviews from our clients

According to the central bank, more interest rates will come later this year, as the Fed leans on higher borrowing costs to douse demand and work to slow faster-than-expected inflation.

In a statement by the policy-setting Federal Open Market Committee, “Overall economic activity appears to have picked up after edging down in the first quarter.” The committee also affirmed its commitment to the ongoing crisis.

The Fed decision lifts short-term borrowing costs to a target range between 1.50% and 1.75%.

In the projection released on Wednesday, the median Fed policymakers expect to further raise interest rates to roughly 3.4% by the end of the year. A move that would suggest another 1.75% in total rate hikes, spread across the remaining four scheduled policy-setting meetings this year.

The Fed is now messaging a much steeper path of rate hikes than it had previously forecast in March (when the median member projected a year-end short-term rate closer to 1.9%).

The urge to move faster coincided with what Fed policymakers are expecting that inflation will not abate as fast as they had expected in their March projections.

The median Fed policymaker now expects prices to rise by 5.2%, as measured by personal consumption expenditures (PCE), over the course of 2022, a faster pace than the 4.3% it had forecast in March.

 The central bank also downgraded expectations on other key economic measures, expecting the U.S. economy to grow by only 1.7% this year, compared to the 2.8% it had forecast in March.

Fed officials also suggested a potential increase in the unemployment rate this year, with the median member now forecasting a 3.7% headline unemployment rate by the end of the year.

Become a member of our Paradise VIP family; with our Binance, Kucoin, and Bybit VIP, you can get life-changing access to knowledge and information in the cryptocurrency trading space with exclusive trading signals and precise trading strategies to maximize your market positions; use our coupon code PRO20%  for a massive 20% discount on your premium membership purchase (Hurry up as this offer is expiring soon); long or short, it is a win-win with us; Join our telegram channels for free trading signals today;

Subscribe
Notify of
guest

0 Comments
Inline Feedbacks
View all comments

Recent Articles

Follow Us

Trade Crypto Like a PRO

Decrease the risk of losing everything you have.

A team of 4 professional traders is sharing their personal daily trade setups with you.

Imagine finally having the right strategy, insights and knowledge to profit from the volatile crypto market movements consistently.

Safe Time, and Start Trading Like a PRO Today
Dark Mode