Washington, Sep. 23- The American Federal Reserve has increased the interest rate again, so of course many currencies in the world are now at risk of falling heavily. The Federal Reserve has announced that interest rates will be raised further in the coming days as part of the fight against price hikes that have raised fears of an economic recession.
The Federal Open Market Committee, the Fed’s policy-making body, raised interest rates for the third time in a row by 0.75 percent, continuing its efforts to curb the highest inflation recorded in the past 40 years. The increase has pushed the policy rate to 3.0-3.25 percent, and the FOMC opined that it is “more appropriate to expect this hike to continue.” Rising prices are squeezing American families and businesses, and becoming a political burden for President Joe Biden, who faces midterm congressional elections next November. But the collapse of the world’s largest economy would be a major blow to Biden, the Fed’s credibility, and the world at large. Federal Reserve Chairman Jerome Powell has made it clear that emergency efforts will continue to stem the economy and prevent a repeat of the 1970s and 1980s. In the 1970s and early 1980s, American inflation had grown out of control, according to a media report.