The Fed decided a new increase in the reference interest rate in the US, in an effort to stabilize inflation

The Federal Open Market Committee (FOMC), a body within the Federal Reserve (Fed), decided to increase the benchmark interest rate by 0.25%, up to the range of 5.00%-5.25%.

“Economic activity expanded at a modest pace in the first quarter. The pace of job creation has been solid in recent months and the unemployment rate remains low. Inflation remains high. The US banking system is healthy and resilient. Credit conditions stricter measures for families and companies will likely have effects on economic activities, employment and inflation. The extent of these effects remains uncertain. The Committee remains very attentive to inflationary risks,” the Federal Reserve announced, according to a statement posted on its website and viewed by MEDIAFAX agency.

The Federal Reserve reaffirmed the goal of achieving “a maximum employment rate and an inflation rate of 2% over the long term.” “To support these objectives, the Committee decided to raise the federal funds rate to a range of 5%-5.25%. The Committee will closely monitor new information and assess the implications for monetary policy. In determining the extent to which new policies will be needed restrictive measures to bring inflation back to the level of 2% over time, the Committee will take into account the cumulative tightening of monetary policies, the delays through which monetary policies affect economic activities and inflation, as well as economic and financial developments”, emphasizes the Federal Reserve.

The Fed highlighted its “firm commitment” to return inflation to the 2% level. “In assessing the appropriate stance on monetary policy, the Committee will continue to monitor the implications of new information on the economic outlook. The Committee will be prepared to adjust the monetary policy stance accordingly if risks arise that could prevent the achievement of objectives,” the Fed stressed.