We initiate regular review on news relating to the US Federal Reserve interest rate because of the indicator’s importance both for the US and the global economies. The 2022 has been one of the most exceptional and challenging years in the history of Federal reserve bank that demanded active interference to the US economy. The Federal Reserve Bank has been raising rates at a record pace (0.35% per month) in the past 40 years. In an attempt to bring inflation to the target level of 2%, the Fed raised the rate from the range of 0.25%–0.5% to the range of 4.25%–4.50% (as of December 2022) in less than a year and as a result benchmark interest rates reached the highest level since 2007. In 2023, the rate hike trend continued with three revisions by 0.25% to a range of 5%–5.25%. But the rapidly rising rate has already led to problems such as slowdown in the economic growth, a crisis in the banking sector, falling prices for debt instruments and stocks. And now the following question arises: how long will the rate hike cycle last to avoid a long recession and problems in the economy?
US Interest Rate review May 2023