The US Federal Reserve hiked today interest rates 25 basis points to a level between 5-5.25 percent. It is the highest level of interest rates since 2007.
The move comes as part of the Fed’s efforts to fight inflation in the US, which was at 5 percent in March.
The tight monetary policy has had an adverse effect on the financial system. Silicon Valley Bank began a series of bank failures in the United States that ended with the failure of First Republic Bank, as regional banks struggle to deal with the outflow of deposits and with losses resulting from holding long-term securities that has seen a sharp drawdown as a result of the rise in interest rates.
Source: Qatar News Agency