Interest rates in the US increased 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 administration would raise interest rates by 0.75 percent. This increase, along with news of emerging signs of reduced inflation and a slower pace of job market growth, could be good news for the Federal Reserve.
Signs such as calmness in the job market, which means a reduction in the power and intensity of money circulation, led Jerome Powell to talk about moderating future interest rate hikes, causing a positive reaction in the US stock market.
One of the key topics in the realm of economy and livelihood and the discussion of inflation is the Federal Reserve’s policy-making as an entity independent of the government. Although Biden, with strength and purposefulness, boosted the US job market and provided financial aid packages following the Corona crisis, which played a role in increasing the inflation rate, the financial and monetary policies under the Federal Reserve’s control and beyond Biden’s control also play a serious role in inflation.