Also, the Federal Reserve System intends to start reducing assets from June 1.
The U.S. Federal Reserve System (Fed), which performs the functions of the country’s central bank, raised the base interest rate for the first time – by 0.5 percentage points, to 0.75-1%.
“The Committee [on Open Market Operations] expects that with a corresponding tightening of monetary policy, inflation will return to its target level of 2%, and the labor market will remain strong. In support of these goals, the FOMC has decided to raise the target range of the federal funds rate to 0.75-1% and expects that a further increase in the target range will be appropriate,” the U.S. regulator said in a statement.
Also, from June 1, the Fed intends to begin reducing assets, which will begin with $47.5 billion per month, where assets in treasury securities will be reduced by $30 billion and $17.5 billion in real estate mortgages. From September 2022, it will accelerate to $95 billion per month – $60 billion in treasury securities and $35 billion in real estate mortgages.