The leadership of the US Federal Reserve System raised the interest rate on federal funds (federal funds rate) by 75 basis points, now its range is 2.25-2.5% per annum, according to a communique of the Federal Open Market Committee (FOMC) following the July meeting.

The decision coincided with the forecasts of economists and market participants.

Thus, the Fed raised the rate by 75 b.p. following the results of the second meeting in a row.

The leadership of the regulator noted the weakening of production indicators and costs in the US economy and at the same time pointed to the active growth in the number of jobs in recent months, while maintaining low unemployment.

„Inflation remains elevated, reflecting the imbalance of supply and demand caused by the pandemic, rising food and energy prices, and broader price pressures,” the document said.

Events in Ukraine create „additional upward pressure on inflation and negatively affect global economic activity,” Fed officials stressed.

As previously reported, in June, the growth rate of consumer prices in the US accelerated to 9.1% from 8.6% in May, updating the maximum in more than 40 years.