In the News
US Federal Reserve raises interest rates by 0.75%

28th July 2022
The US Federal Reserve has announced a sizeable increase in interest rates of 0.75% and a new target interest rate of 2.25% to 2.50%.
Whilst the move is designed (with an uncertain time lag) to rein in US inflation, the wider implications are a higher cost of borrowing for developing economies because of a strengthening of the dollar - and a commensurate rise in the cost of importing dollar-denominated commodities and even greater stresses for the global economy as a whole.
More than half of the world's goods are priced in US dollars, so when the dollar strengthens, then the price of imported food, energy and other commodities for many countries - high and low-middle income alike - tends to rise adding to cost-push inflation in these nations.
Watch Chair Powell's statement from the #FOMC press conference:
— Federal Reserve (@federalreserve) July 27, 2022
Intro clip: https://t.co/K2LiY6hWtM
Full video: https://t.co/J8NUrfGgVi
Press Conference materials: https://t.co/D39XU1uopE pic.twitter.com/X1KxuzdgiK
The Fed’s rate increases are a matter of high interest for everyone https://t.co/PdAGPDYbAg | opinion
— Financial Times (@FT) July 28, 2022
Fed announces another three-quarter-point increase in interest rates https://t.co/ERRV6HH18X
— Guardian Business (@BusinessDesk) July 27, 2022
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