The Fed raises interest rates by 0.75%. The cost of money thus rises in a fork between 3.75% and 4%. This is the fourth consecutive 75bp hike for the US central bank in its fight against inflation and the sixth rate hike since the beginning of the year (four 75bp hikes, a quarter of a point in March and a half). point in May). The decision brings interest rates to their highest levels since 2008.
The monetary policy committee also anticipates that new increases “will be appropriate to achieve a sufficiently restrictive monetary policy stance to bring inflation back to 2 per cent over time”. In determining the pace of future increases, the FOMC – he explains – “will take into account the cumulative tightening of monetary policy, the delays with which monetary policy affects economic activity and inflation and economic and financial developments”.
The US central bank also confirms “the reduction of its portfolio of Treasury and agency debt securities and agency mortgage-backed securities, as anticipated last May in the budget reduction document”.
The latest move by the Federal Reserve “will help reduce inflation while a rise in mortgage rates should cool inflation in the housing market.” This is what the White House press office Karine Jean-Pierre said.