The Fed will raise interest rates by another 50 basis points

The seventh U.S. interest rate hike this year will take place in the coming days, policymakers at the U.S. Federal Reserve System (Fed) have said.

The adjustment will be another 50 basis points, with the short-term rate reaching a range of 5% to 5.25% by the end of 2023.

At the same time, it is estimated that the Central Bank could raise the rate by three-quarters of additional points and leave them at this level until the end of next year.

As a reminder, the Federal Reserve is applying interest rate hikes as a strategy to control inflation in the United States, although the US Central Bank announced this Wednesday a smaller adjustment from the previous four, if inflation starts to fall, there will be more modifications. made.

The Fed raised its key rate by half a percentage point to a range of 4.25% to 4.5%, the highest level in 15 years. The adjustment was smaller than the previous three, where three-quarters of a percentage point was adjusted. These changes will cause higher costs for consumers and lenders, and there is a risk of a possible recession.

It appears that the strategies employed by Federal Reserve officials are bearing fruit in curbing what is considered the worst price increase in four decades. For example, the national average for a liter of regular gasoline, for example, fell from $1.32 in June to $0.84 (a gallon cost $5 and dropped to $3.21).

Services have also fallen, from hotels to airline tickets and car rentals.