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Federal Reserve Hikes Key Interest Rate To 5% Despite US Bank Chaos

The Federal Reserve hiked interest rates on Wednesday — a pivotal move that showed the central bank’s resolve to tackle inflation despite recent chaos in the US banking sector, the NY Post reports. In a hotly anticipated decision, the rate-making Federal Open Market Committee hiked its benchmark rate by 0.25% — to a range of 4.75% to 5% — at the conclusion of the Fed’s closely-watched policy meeting.

“The U.S. banking system is sound and resilient,” the FOMC said in a statement. “Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation.”

 

Source: Matzav

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