US Fed hikes interest rates by 75 bps

The US Federal Reserve announced today, Wednesday, November 2, that it has raised the interest rate by 75 basis points, which is the fourth increase with the same ability in a row, and also hinted at a change in its monetary policy to curb inflation.

In a move that markets had been expecting for weeks, the Fed announced interest rates hike by 75 basis points to the range between 3.75% and 4%, the highest level since January 2008.

The move comes as part of the Fed’s efforts to tighten monetary policy at the fastest pace since the early 1980s.

After the decision, the markets are waiting for more signals and hints from Federal Chairman Jerome Powell, who will speak at a press conference to comment on monetary policy in the coming period.

In today’s FOMC statement, the FOMC expects interest rates to continue to increase in order to bring inflation back to its 2% target over time.

The statement emphasized the strength of the US labor market in recent months, as well as continued concern among Fed officials about inflation risks.