The Federal Reserve has decided to raise the interest rate in the United States again. According to the Wednesday (July 27) announcement, the increase amounts to 0.75 percentage points.
The Fed says that the interest rate increase is to contain inflation in the US. Although it has raised the rate, the agency clarifies that the economy already shows signs of slowing down.
The new increase brings the federal funds rate between 2.25% and 2.5% after the Fed’s announcement. The Fed’s goal is to reduce inflation to rates close to 2%.
However, this is well below the current inflation rate above 9%. The index has reached values that have not been seen in the United States for 40 years. For the Fed, the war in Ukraine is a big challenge in containing inflation.
The conflict between Russia and Ukraine reflects inflation in the US. In addition, the Fed’s announcement caused the price of bitcoin to increase in the crypto market. In the past 24 hours, the crypto asset has risen by more than 8% and is being quoted above US$ 23,000.
Other crypto assets have appreciated sharply following the Fed’s announcement. The ether, for example, is up almost 12% in the last 24 hours. Lido DAO (LDO) appreciated by 38.46% in that same period.