Federal Reserve Hikes Benchmark Interest Rate

Washington, The US Federal Reserve announced a hike Wednesday in its benchmark interest rate by 0.25 percentage points to a range of 0.5 to 0.75 per cent.

The central bank credited the action to “realized and expected labour market conditions and inflation.” “The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labour market conditions and a return to 2-per-cent inflation,” dpa cited a Fed statement.

The Fed noted “solid” job gains, with the unemployment rate now down to 4.6 per cent, while economic activity “has been expanding at a moderate pace since mid-year.” Inflation remains below the Fed’s 2-per-cent long-term objective.

The Fed “expects that economic conditions will evolve in a manner that will warrant only gradual increases” in the benchmark interest rate.

Source: Qatar News Agency