The Fed will raise interest rates by 0.5%. This is the highest rise since 2000.

The Federal Reserve said Wednesday that it was raising interest rates by 0.5 percentage points to curb high inflation.

Important reason: According to the report, interest rates have risen so much for the first time in 22 years. CNN..

What they are saying: “Inflation is so high that we understand the difficulties it is causing and we are moving quickly to get it back. We have the tools we need and on behalf of American families and businesses. We have both the determination needed to restore price stability, “said Jerome Powell, Chairman of the Federal Reserve Board. Said During a press conference.

detail: He also Said This year, we can expect the Fed to shrink its $ 9 trillion asset balance sheet while increasing the percentage of more half-points, but not more.

• Powell added that the impact of Russia’s invasion of Ukraine has created “additional upward pressure on inflation” as prices of crude oil and other commodities soared. On the other hand, the blockade of COVID-19 in China could exacerbate supply chain problems.

Flashback: The Federal Reserve Board last halved interest rates in 2000. The Wall Street Journal..

what else? according to CNBC News, These interest rates are the standard that banks follow to charge each other for short-term loans. It also affects consumer debt with adjustable interest rates such as mortgages.

Line spacing: Wall Street was worried because of recent inflation.If it is not managed, the Fed will recession Slow things down. Goldman Sachs said last month that the United States could have a 35% recession within the next two years. Dezalet News..