US Federal Reserve Has Raised Interest Rates For The Third Time

The U.S. Federal Reserve has raised interest rates for the third time by three-quarters of a percentage point in a row. This is the highest interest rate hike since 2008. The measure was said to have been taken to deal with inflation which has not been seen in 40 years.

Interest rates are expected to rise one more time this year. In this case, the year's economic growth may slow down, as The U.S. Federal Reserve has predicted.

Following the rise in interest rates, the stock market fell. Oil prices fell by about one per cent. However, the Federal Reserve Bank chairman has decided that he will not back down from the measures to control inflation. Meanwhile, the interest rate has increased by 75 basis points, as expected.

Jerome Powell said a strong labour market could not achieve positive growth without stability. He also said he is determined to bring inflation down to 2%.

Since the beginning of this month, experts have been tipped that the central bank may raise interest rates, and the same has been raised. Meanwhile, it is expected that the interest rate may also be forced to increase in the next meeting.

The U.S. inflation rate was 8.3% last August. Meanwhile, the Central Bank has taken such restrictions. This may prompt the central banks of other countries to increase interest rates.