Federal Reserve raises interest rates by 50 basis points
US Federal Reserve raised the short-term benchmark interest rate by half a percentage point or 50 basis points on Wednesday
By Yashasvini Razdan
Published - May 04, 2022, 09:14 PM ET
Last Updated - Feb 26, 2024, 09:02 AM EST
• The interest rate will now range between 0.75%-1%
The US Federal Reserve raised the short-term benchmark interest rate by half a percentage point or 50 basis points on Wednesday.
The central bank also announced its plans to shrink its $9 trillion asset portfolio starting next month in to reduce inflation that has grown at the fastest pace since January 1982.
The Federal Open Market Committee’s (FOMC) decision will now throw the rate between a range of 0.75% and 1%. The last time, the Fed raised the interest rate by half a percentage point was in 2000.
