Federal Reserve raises interest rates to counter inflation
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| Federal Reserve raises interest rates |
US Federal Reserve raised the interest rate by 50 basis points for the first time since 2000 and reached 1% from 0.5%, which is a significant increase that the Fed is adopting to counter high inflation.
As soon as the Federal Reserve raised interest rates, the central banks of Saudi Arabia, the UAE, Bahrain, and Qatar followed the US Federal Reserve's decision and raised interest rates by 0.5%, while Kuwait raised the interest rate by 0.25%.
We find that there are expectations that interest rates will rise in the short term to 1.9% by the end of 2022, and the following are the dates of the upcoming Federal Reserve meetings: (June 15, July 27, September 21, and November 2nd, December 14).
In addition to the possibilities of holding exceptional meetings if necessary, and we find that some European countries enjoy negative and zero interest rates, which is likely to change for the first time since 2014 against the backdrop of the expected US federal hikes, the spread of global price inflation and the continuing repercussions of Russia’s open war on Ukraine.