The Federal Reserve's Monetary Policy Committee announced today, Wednesday, after the end of its meeting, an interest rate hike of 0.75% for the second consecutive month, in line with market expectations which indicated an interest rate hike of 0.75% during this month, bringing the US interest rate to 2.50%.

The US Federal Reserve sets short-term interest rates in the United States through its decision regarding the interest paid by banks to each other during overnight trading in exchange for borrowing their reserves in case of a shortfall in the required reserves. This is the reserve interest rate.

The Federal Reserve interest statement issued today addressed the following points:

The Monetary Policy Committee of the US Federal Reserve decided to raise interest rates by 0.75% to reach 2.50%.

Recent indicators of spending and production have declined. However, job gains have been strong in recent months, and the unemployment rate has remained low.

Inflation remains high, reflecting supply and demand imbalances related to the pandemic, rising food and energy prices, and broader price pressures.

The war of Russia against Ukraine is causing immense human and economic difficulties.

The war and related events create additional upward pressure on inflation and impact global economic activity.

The US Federal Reserve is very concerned about inflation risks and seeks to slow it down.

The committee aims to achieve maximum employment and 2% inflation in the long term.

To support these goals, the committee decided to raise the target range for the US interest rate.

The committee expects that ongoing increases in the target range will be appropriate.

In addition, the committee will continue reducing its holdings of US Treasury bonds.

The US Federal Reserve is strongly committed to returning inflation to its target of 2%.
 
In assessing the appropriate monetary policy stance, the committee will continue to monitor the implications of incoming information on economic forecasts.

The US Federal Reserve is prepared to adjust the monetary policy stance appropriately if risks arise that may hinder the committee's goals.

The committee’s assessments will take into account a wide range of information, including readings on public health, labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

The interest rate decision was voted unanimously by all members of the US Federal Reserve.