The US authorities intend to take drastic measures to reduce rising prices. Moreover, they even plan to raise the interest rate.
Cleveland Federal Reserve Bank President Loretta Mester indicated her intention to fight inflation in the US by raising the prime rate. Mester announced that she would advocate for a 0.75% rate hike from its current range of 1.5-1.75%.
The president of the Cleveland Federal Reserve Bank said that July’s meeting would likely involve a debate among the FOMC policymakers over whether to opt for 50 or 75 basis points.
The Federal Reserve raised its benchmark interest rate by 75 basis points in June. It is considered the most aggressive hike since 1994. At the same time, the regulator promised to tighten monetary policy to reduce the record inflation rate over the past decades. In May, it reached 8.6% in annual terms.
