US Federal Reserve raises interest rates to highest in 22 years

The US Federal Reserve made an anticipated move by raising interest rates by 25 basis points, bringing them to their highest levels in nearly 22 years.

During the recent meeting on Wednesday, the Federal Reserve's Open Market Committee decided to implement the quarter-percentage-point hike, resulting in a range of 5.25 percent to 5.50 percent. This marks the eleventh increase since the beginning of the previous year.

It's worth noting that the Fed had maintained interest rates unchanged in the June meeting, following a series of 10 consecutive increases initiated in March 2022.

In June, the annual inflation rate in the United States dropped to 3 percent from 4 percent in May, a significant decline that surpassed analysts' predictions.

The Federal Reserve's objective is to achieve a long-term inflation rate of around 2 percent, which is currently within reach.