US Federal Reserve raises policy rate again by 0.75 percentage point Migros, Coop and Co: The nine largest retailers show how they save electricity

The US Federal Reserve raises interest rates by more 0.75 percentage points On. The new interest rate range is now between 3.75 and 4.0 percent highest level since January 2008as the Federal Reserve announced in Washington on Wednesday.

Not without controversy

It was the sixth rate hike this year and the fourth in a row by 0.75 percentage point. The Fed stressed that further rate hikes were “appropriate” in the fight against inflation. However, the effects on the economy must be taken into account. Experts fear that if the US Federal Reserve steps in too hard to curb inflation, the economy could grind to a halt.

US inflation in June was fueled by the Russian war of aggression against Ukraine 9.1 percent, the highest value in more than 40 years. As a result, inflation recently fell to 8.2 percent; however, this is still well above the Fed’s target of two percent. Many countries around the world are experiencing very high inflation.

Inflation could become crucial in the medium term

Surveys show that people are mainly concerned about inflation. According to the surveys, many voters see Republicans ahead of the curve in terms of economic competence ahead of the upcoming midterm congressional elections. During the election campaign, they denounce inflation, which they blame on President Joe Biden’s Democrats. The US Federal Reserve has always used the robust labor market as an argument against sliding the economy into a deep recession. Many companies complain about a labor shortage. The economy also grew somewhat faster than expected in the summer.

President Biden took this as evidence of economic recovery and people’s resilience. In the first half of the year, the US economy was still contracting. (sda/dpa/afp)