Interest rates in the US have risen to alleviate inflation pain.
Jerome Powell, the Chairman of the US Federal Reserve, delivered one of his most important speeches of 2022 on Wednesday, announcing that his institution would raise interest rates by 0.75%. This increase, along with news of emerging signs of reduced inflation and a calmer job market growth, can be seen as good news for the Federal Reserve.
Indicators such as calmness in the job market, which imply a reduction in the power and intensity of money circulation, led Jerome Powell to talk about moderating future interest rate hikes. This, in turn, caused a positive reaction in the US stock market.
One of the key topics in the realm of economics, livelihood, and the issue of inflation is precisely the Federal Reserve’s policymaking as an institution independent of the government. Although Biden strengthened the US job market with power and purposefulness and provided financial aid packages following the COVID-19 crisis, which played a role in increasing inflation rates, the monetary and fiscal policies under the Federal Reserve’s control, and beyond Biden’s control, also play a significant role in inflation.