US Federal Reserve considers further raising interest rates

(VOVWORLD) – The US Federal Reserve will opt for another 75 basis point rate hike rather than a larger move at its meeting on Wednesday, similar to the rate hike in June, in order to reduce demand and inflation pressure. 

The headquarter of the US Federal Reserve (FED) in Washington, D.C. (Photo: AFP/VNA)

According to the Fed, in the context of households struggling with rising gas, food and housing prices, curbing rising inflation is the top priority even if this policy causes no small impact.

Last month, Fed Chairman Jerome Powell said that the Federal Open Market Committee would consider an increase of either a 50 basis point or a 75 basis point at the next policy meeting in July, while most economists expect the Fed to raise interest rates with an adjustment similar to the level in June.

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