The Federal Reserve raises interest rates by a quarter of a percentage point

The Federal Reserve (the US central bank) raised interest rates for the tenth time in a row, on Wednesday, indicating at the same time a tendency to soften its future steps, against the backdrop of indications of an economic slowdown in the United States.

The Federal Reserve started raising interest rates in March of last year with the aim of containing inflation, but the inflation rate is still well above the target of 2 percent.

On Wednesday, the Federal Reserve raised the interest rate by a quarter of a percentage point, bringing the interest rate to a range between 5.0 percent and 5.25 percent, according to a statement by the US Central Bank, which is likely to ease the tightening of lending conditions for households and companies, which weighs on the economy.

The recent decision of the Federal Open Market Committee came in line with expectations, while experts and traders closely monitor any change in future directions.

In its statement, the Fed announced that it will “take into account the accumulated tightening of monetary policy” and the negative effects of this policy on the economy in its future decisions.

This marks a shift from the statement made when the Reserve Bank raised interest rates last time when it indicated that “further tightening” might be necessary to contain inflation.

This is an indication that the Federal Reserve is in the process of softening its views.