Interest rates in the US: how the highest rate hike since 1994 could affect Brazil

Dollars and Federal Reserve Symbol

Credit, AFP

The Fed (Federal Reserve, central bank of the United States) raised this Wednesday (15/6) the interest of the American economy by 0.75 percentage point, to the range of 1.5% to 1.75%.

It was the biggest increase since 1994, in an attempt to contain inflation in the US, pressured by the increase in fuel and food prices, as a result of the war in Ukraine and the logistical disruptions caused by the lockdowns in response to covid-19 in China.

After the rate hike, Fed Chair Jerome Powell signaled the next high should be 0.50 or 0.75 percentage point, allaying fears that the next adjustment could be even stronger, 1 point.

“Clearly, the 75 basis point increase [0,75 ponto percentual] today is unusually large and I don’t expect moves of that size to be common,” Powell said. “From today’s perspective, a 50 basis point or 75 basis point increase seems more likely at our next meeting.”

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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