US central bankers recently announced a determined fight against inflation.
(Photo: Reuters)
Washington The US Federal Reserve (Fed) intends to continue raising interest rates in order to bring inflation under control in the United States. Interest rates could therefore rise in the long term, even if there is a risk that this will slow down the US economy.
This emerges from the minutes of the last central bank meeting on June 14th and 15th, which were published on Wednesday evening (CEST). The meeting reportedly confirmed that interest rates would be raised by 50 or 75 basis points at the next meeting in July. Getting inflation under control is crucial to maintaining the central bank’s credibility.
In mid-June, the Fed raised its key interest rate more sharply than it had since 1994, in view of the highest rate of inflation in more than 40 years. It approved an increase of 0.75 percentage points to the new range of 1.50 to 1.75 percent. The currency watchdogs also signaled that further interest rate hikes will follow this year.
More: Powell isn’t ruling out a 1 percentage point rate hike
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