The Strategist

Fed raises benchmark rate to 3-3.25% per year

09/22/2022 - 10:41

For the third time in a row, the U.S. Federal Reserve (Fed) increased its benchmark interest rate by 75 basis points, to 3-3.25 percent.

"The long-term goal of the central bank is to achieve maximum employment and inflation at 2%.

The agency has decided to increase its target range for the benchmark interest rate to 3-3.25 percent in order to meet these objectives and anticipates that additional increases in the target range would be necessary," the US Federal Reserve stated.

The rate was already increased by the U.S. central bank by 0.75% in July. The watchdog's decision was justified, as before, by the acceleration of US inflation, which rose to 9.1% in June. According to senior economist of Oxford Economics Kathy Bostjancic, inflation dropped in August but was still higher than expected.