USA-The Fed raises its main interest rate by half a point

WASHINGTON, May 4 (Reuters) – The U.S. Federal Reserve (Fed) on Wednesday raised its main interest rate by half a point, its biggest hike in nearly 22 years, and announced that it would start trimming its balance sheet. next month, thus accelerating the tightening of its monetary policy in the face of inflation.

The rate target for federal funds (“fed funds”), the Fed’s main monetary policy instrument, is raised to between 0.75% and 1%, as expected by all economists and analysts polled by Reuters before the meeting of the Federal Open Market Committee (FOMC).

This decision was taken unanimously.

The FOMC had already decided on a rate hike in March, but limited it to a quarter of a point.

Fed Chairman Jerome Powell is due to comment on this decision and the changing economic situation at a press conference starting at 6:30 p.m. GMT. (Report Howard Schneider and Ann Saphir, French version Marc Angrand)

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