As expected, the Federal Reserve this afternoon announced an increase of 0.75% in interest rates. The Fed said it is “strongly committed to returning inflation to its 2% objective.”
The Fed cited what it termed “robust” job gains and low unemployment in recent months and said there has been modest growth in spending and production.
“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures,” the Fed said. “Russia’s war against Ukraine is causing tremendous human and economic hardship. The war and related events are creating additional upward pressure on inflation and are weighing on global economic activity.”
The Fed said it will “take into account a wide range of information, including readings on public health, labor market conditions, inflation pressures and inflation expectations, and financial and international developments” in deciding whether to continue hiking interest rates in future months in order to control inflation.
