The US Federal Reserve (Fed) decided to increase interest rates for the first time since November 2018. The Fed raised its policy rate by 25 basis points.

The US Federal Reserve (Fed) increased the Federal Open Market Committee (FOMC) policy rate to 0.25-0.50 percent. Thus, the Fed decided to raise interest rates for the first time since November 2018.

The Fed, which decided to raise the interest rate, gave signals for six rate hikes for the rest of the year.

In the statements, the effects of the Russia-Ukraine war were also emphasized. In addition, it was stated that the impact of the aforementioned situation on the US economy is uncertain. However, the occupation and related developments may create additional upward pressure on inflation in the short term.

Powell said that ”Even as the occupation of Ukraine by Russia and related events put downward pressure on economic activity, Federal Open Market Committee participants predicted strong growth. We have a 2.8 percent forecast for growth this year.”