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This was the seventh price hike in 2022 by the Fed in an unprecedented set of measures to reign in inflation.
These harsh measures, which have the impact of curbing spending which slows down manufacturing, had, it was feared, may set off a recession.
Extra price hikes are anticipated.
“Inflation stays elevated, reflecting provide and demand imbalances associated to the pandemic, increased meals and vitality costs, and broader value pressures,” the Fed mentioned in an announcement on the finish of a two-day assembly of its high coverage physique.
“Russia’s battle towards Ukraine is inflicting great human and financial hardship. The battle and associated occasions are contributing to upward stress on inflation and are weighing on international financial exercise,” it added.
The Fed expects inflation to be 5.6 per cent on the finish of the yr and fall to three.1 per cent in 2023.
Fed chair Jerome Powell is predicted to carry a information briefing shortly.
–IANS
yashwant/sha
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