The Federal Reserve increased the interest rate on Wednesday by 75 basis points, raising the target range from 2.25% to 2.5% in its attempt to quell the highest inflation that the United States has seen in the last four decades.

With this increase, two consecutive adjustments are accumulated that add up to 150 base points, where all the members with the right to vote were in favor of the magnitude of the increase, which indicates the strong commitment of the monetary authorities to reduce the high levels of inflation. .

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They also pointed out that they will not hesitate to make an even bigger move if appropriate.

On the possible scenario of a recession, Jerome Powel, Chairman of the Federal Reserve, commented that a period of growth below potential is needed to allow supply to catch up. They also expressed that within the FED they do not think that a recession should occur, since the path has narrowed to prevent that from happening, adding that several sectors are showing a good performance within the American economy.

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For its part, the Federal Open Market Committee (FOMC), for its acronym in English, is trying to cool demand to control the increase in prices, which it considered as a transitory phenomenon at the end of last year. Now he warned of supply and demand imbalances and rising food and energy prices in persistently high inflation.

The Committee noted that job creation has been robust and the unemployment rate has remained low, reiterating after the decision was released that it "anticipates that continued increases in the target range will be appropriate" and that it would adjust policy if risks arise that may prevent the achievement of its objectives.

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