In the US, struggling with inflation, the Federal Reserve also increased its policy interest rate by 0.5 percent on Wednesday. Let us tell you that in March, retail inflation reached 5.2 percent here, while the Federal Reserve has been given the responsibility to limit it to two percent. Earlier in March, the Federal Reserve’s Committee on Open Markets had increased the policy interest rate by a quarter percent.
In a statement issued on Wednesday after the two-day meeting of this Federal Reserve committee, a target of keeping the policy rate from 0.75 percent to one percent has been set. The Federal Reserve has raised the policy interest rate for the second consecutive month for the first time since 2006 and for the first time since the year 2000, it has increased the policy interest rate by half a percentage in one go.
Milk and oil prices may increase, inflation will haunt more
Federal Reserve Chairman Jerome Powell has indicated a further rate hike in the policy in the coming times and it is being speculated that by November-December, the policy interest rate may go up to 2.5 to 2.75 percent. Powell said the Federal Reserve has both the tools and determination it needs to restore price stability.