US Interest Rates Rise by 0.25% Despite Banking Crisis

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US Interest Rates Rise by 0.25% Despite Banking Crisis
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The FederalReserve has increased interest rates in the USA by 0.25% for the second successive meeting, amid turmoil in the banking system which might have led to a pause in rate hikes. ratehike ratehiking fedmeeting fedratehike FOMC

Get DailyForex analysis to your emailIn the hours leading up to the rate decision, the CME FedWatch Tool revealed that 86.4% of respondents were convinced there would be a rise of 0.25%.The Federal Reserve has increased interest rates in the US by 0.25% for the second successive meeting, amid turmoil in the banking system which might have led to a pause in rate hikes.

This is despite the belief that the aggressive rate-raising policy has contributed to the stress in the banking system and the recent collapses of Silicon Valley Bank and Signature Bank. The effect of cumulative monetary policy tightening, and its consequences for economic activity and inflation, will be watched carefully by the committee.

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