The US Federal Reserve increased interest rates by 50 basis points at its May meeting, as expected.

The Federal Open Market Committee (FOMC) increased the policy rate by 50 basis points to the 0.75-1 percent range. The decision was taken unanimously. In the statement, it was emphasized that they were careful against inflation risks. It was stated that the problems in the supply chain will continue due to the ongoing pandemic in China. In addition, Russia’s occupation of Ukraine and related developments put upward pressure on inflation and would continue to affect the economy negatively.

The Fed raised interest rates for the first time since 2018 in March to combat the highest inflation since the 1980s. The PCE price index, followed closely by the bank, was 6.6 percent in March, well above the bank’s target. The Fed was also the target of criticism that it was late in raising interest rates.