Washington (HRNW) — Amid the Iran war and growing inflationary pressures, the US Federal Reserve has raised its interest rate after nearly three years.
The Federal Reserve increased the interest rate by 0.25 percentage points, or one-quarter of a percentage point.
The central bank said the decision is aimed at helping bring inflation back to its 2% target in a timely manner.
The rate hike is intended to contain inflationary pressures, although higher interest rates can also increase borrowing costs for households and businesses and affect economic activity.
Human Angle
Changes in interest rates and inflation can directly affect household budgets, borrowing costs, businesses and employment. Clear economic information is therefore important for people to understand how monetary-policy decisions may affect their daily lives.
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Disclaimer
This report is based on the information provided. Economic impacts associated with interest-rate changes, inflation and geopolitical developments may vary, and their full effects can only be assessed over time.
