Washington. The Federal Reserve has once again raised interest rates in the US amidst the bankruptcy of two banks. The Federal Reserve raised interest rates by 0.25 percent on Wednesday. With this increase, interest rates in the US have reached the highest level in 16 years. With the increase in interest rates once again by the Federal Reserve, inflation in other countries including India can once again raise its head. Because of which the Reserve Bank may also be forced to increase the interest rates. The US Labor Department’s monthly report came just a day before the Federal Reserve raised interest rates. It was revealed that job opportunities in America have reduced. There has also been a lot of retrenchment in March. In such a situation, increasing unemployment can prove to be a headache for Biden’s government.
After the increase in interest rates, a statement was issued by the Federal Reserve saying that there will be no further increase in interest rates. The Federal Reserve has raised its interest rates 10 times since last year. The Federal Reserve says that its committee will consider future information and take the next necessary steps after assessing the impact of its monetary policy. In the midst of the bankruptcy of two banks in the US, Federal Reserve Chairman Jerome Powell also claimed that the banking system is strong. He said the banks remain strong and resilient. Turmoil in the financial system could slow down spending and growth.
With the Federal Reserve increasing the interest rates once again, loans in the US will also become more expensive. Along with this, those investing in global markets will also take their money there. Due to this, big upheaval can also be seen in the stock markets. The Federal Reserve of America has been increasing interest rates for 14 consecutive months. Now the interest rate has been 5.25 percent. Since helping Ukraine in the war against Russia, interest rates in the US have continued to rise.