NextGen Day

ANKARA, Turkey — On Wednesday, all eyes were on the US Federal Reserve, which is set to raise the benchmark rate for the first time since 2018.

To begin monetary tightening, the Fed is likely to raise rates by 25 basis points.

The invasion of Ukraine by Russia prompted central banks to rethink their monetary policies, with the Federal Reserve taking center stage amid fears about supply disruptions and an unexpected inflation shock that is growing by the day.

According to the US Labor Department, annual consumer inflation in the United States reached 7.9% in February, the highest 12-month gain since January 1982.

According to the department’s findings, producer prices increased by a record 10% year over year in February.

Brent crude rose to USD139.13 a barrel last week, the highest since 2008, as a result of the United States’ import ban on Russian oil, natural gas, and coal.

Wheat, palladium, copper, platinum, and nickel were among the other commodities that saw price increases last week.

While it is nearly inevitable that the bank would raise interest rates by 25 basis points, the text of the decision will be scrutinized for signals as to the pace and amount of the tightening to come in the coming months.

The words of Fed Chairman Jerome Powell after the interest rate decision will be significant in the course of the markets, as will the messages on the roadmap to be followed with the termination of asset purchases and balance sheet reduction.

In November 2018, the Fed raised interest rates for the first time since implementing expansionary monetary policies in the aftermath of the global financial crisis.

The bank is expected to raise interest rates by 25 basis points seven times this year, and market expectations will be reshaped by verbal guidance on the bank’s response to the economic effects of the Russia-Ukraine conflict.

Meanwhile, on Tuesday, US President Joe Biden signed a massive federal government budget plan that includes USD13.6 billion in new money for Ukraine’s fight with Russia.

Save/Share this story with QR CODE

---

Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

📩 Need to get in touch?

Feel free to Email Us for comments, suggestions, reviews, or anything else.

---

We appreciate your reading. 😊Simple Ways To Say Thanks & Support Us:
1.) ❤️GIVE A TIP. Send a small donation thru Paypal😊❤️
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) 🛒 BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) 👍 Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).

---

AFFILIATE PARTNERS

World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.

---