US Fed vows raising rate to 4.5%

The US Federal Reserve (Fed) intends to raise the key interest rate to about 4.5% at a rapid pace, and then keep it at this level, Report informs referring to Interfax.

The Fed said at the same time that it plans to tighten monetary policy if inflation in the country continues to grow. According to forecasts, the Fed may raise rates by 75 basis points for the fourth time in a row next month.

Such a move becomes even more expected amid concerns about energy prices in connection with the decision of OPEC+ to cut oil production, as well as optimistic data on the US labor market, which were published last week.

Since March, the Fed has raised rates five times, now it is 3-3.25%. At the same time, the regulator raised it by 75 basis points at once during the last three meetings. The next Fed meeting is scheduled for November 1-2.

CPI index in the US rose by 8.3% in August compared to the same month last year.

The US Department of Labor will publish data on the dynamics of consumer prices in September on October 13.