The United states’ Federal Reserve Chairman, Jerome Powell has announced the decision by the Federal Reserve to go ahead with another rate hike at the end of their two-day Open Market Committee meeting.
During the briefing, Powell announced that Federal Reserve will raise the rate by other three-quarters of a percentage point. This is the second straight time the banking system has decided to raise rates.
The decision comes as the country battles with 9.1% inflation rate, the highest in decades. The Federal Reserve hasn’t raised rates by a combined 1.5% percentage points in consecutive meetings since the 1980s.
In response, White House spokesperson Jean-Pierre stated that Fed Chair Jerome Powell stated unequivocally that the US is not in a recession and that the labor market is strong.
She also said President Biden is keenly aware of that prices for gas, food and goods is still too high, but is doing the work needed to lower prices.
According to many economists, the US economy will contract for the second quarter in a row.
The International Monetary Fund (IMF) issued a warning this week that the global economy may be on the verge of a recession as US growth slows and price increases squeeze households worldwide.
