The US Federal Reserve raised interest rates by 0.5 percent to control inflation

The US Federal Reserve (Fed) has proposed a policy of raising average interest rates to control inflation, which has been high for four decades. Accordingly, after the policy meeting on May 3-4, the Fed raised the average interest rate by 0.5 percent. The Fed raised interest rates 0.5 percent at a time, the highest rate in 20 years.

Fed chief Jerome Powell said the move would affect middle-class American households. Although the decision has slowed the US economy for some time, in the long run it will reduce inflation and stabilize prices, Powell said.

Similarly, the Fed is preparing to reduce its net worth to ९ 9 trillion during Covid’s time. The Fed has proposed a कट 47.5 billion cut in June and ९ 95 billion a month from September.

The policy, proposed by the Federal Reserve, will reduce consumer spending as well as investment in small and cottage industries. This decision will only slow down the US economy. In this context, the US economy has strengthened and will be able to move forward by adapting to the forthcoming average interest rate hike, Powell said. He said the Federal Reserve was ready to raise interest rates even after its June meeting.