US Fed hikes interest rates by 25 basis points to 5% - 5,25% range

'Economic activity expanded at a modest pace in the first quarter,' says Federal Open Market Committee

By Ovunc Kutlu

ISTANBUL (AA) - The US Federal Reserve raised its benchmark interest rate Wednesday by 25 basis points.

The Federal Open Market Committee (FOMC) unanimously decided to raise the target range for the federal funds rate to between 5% and 5.25% -- its highest since August 2007.

"Economic activity expanded at a modest pace in the first quarter," the FOMC said in a statement.

It reiterated that the US banking system is "sound and resilient" amid a recent banking crisis.

"Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain," it added.

The US central bank raised interest rates by a total of 425 points in seven hikes last year to fight record inflation that soared in June to its highest in more than 40 years.

It was followed by rate hikes of 25 basis points apiece Feb. 1 and March 22.

Kaynak:

This news has been read 106 times in total