Inflation: US central bank raises interest rates to their highest level in over 15 years.

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United states: In an effort to contain rising prices in the greatest economy in the world, the US central bank has raised interest rates to levels not seen in almost 15 years. Yesterday, the Federal Reserve stated that the key rate would rise by an additional 0.75 percentage points.

Jerome Powell, the chairman of the Federal Reserve, stated that the Fed’s policymakers had unanimously decided to increase the benchmark overnight interest rate to a range of three to 3.25 percent. According to him, rate increases were necessary to reduce demand, relieve the pressures driving up prices, and prevent long-term economic harm.

The bank predicted that interest rates will continue to rise and be high. Despite growing worries that a severe economic downturn could result from curbing inflation, the action is nonetheless taken. Media sources claim that as banks hike rates to address their own inflation issues, they are forced to make comparable trade-offs in almost every nation.