The US Federal Reserve raised the key rate to a 17-year high

There was another increase in the key rate in the United States. The Federal Reserve raised the bar another 25 basis points. Now it is 4,75-5%.

This is the highest level of the key rate in the US over the past 17 years.

It is noteworthy that the leadership of the Fed said that "there are developments regarding the further increase in the discount rate" - at least another 25-50 basis points. In other words, the key rate in the United States may reach 5,5% after another increase.

In Russia, we recall, the key rate of the Central Bank of the Russian Federation is 7,5% and has not changed since September last year. And the RUONIA rate, which is determined by the performed interbank transactions, is 7,26%.

The US Federal Reserve said that the increase in the discount rate is due to the need to reduce inflation. The regulator is trying to bring the inflation rate in the United States to 2 percent. However, usually the methods of raising the key rate lead to a decrease in inflation due to a decrease in business activity. Without active support from the state, it is simply unprofitable for businesses to take loans, the cost of which is high (at least by American standards). For small businesses in the US, which make a huge contribution to GDP, a loan at a rate above 5 percent is a huge burden, given that for some segments of small businesses, annual profits do not exceed 7%.

Experts believe that the next increase in the key rate in the US will lead to the closure of at least 15 percent of small businesses.

Comments

[Machito]

For the Fed.
Without clinking glasses.
It is impossible to inflate unsecured paper and electronic bubbles indefinitely. Bubbles burst sooner or later.
The NWO dealt a serious blow to the economy. But not Russia, but the USA.

[Maz]

US national debt, plus last week poured half a billion in one day to save the banking system, plus almost two trillion for covid and the recession associated with it. Not to mention the world's largest defense spending, mother don't worry. For the frs!

[Ilya-spb]

Rising rates lead to the collapse of an unstable banking system. Extinguish the fire with gasoline.

For the FRS. Let's remember)

[carpenter]

Quote: Bearded

It is impossible to inflate unsecured paper and electronic bubbles indefinitely.

The printing press is running. The Fed did not wait until March 22 and launched the money pump at full capacity.
 The most powerful credit impulse in the history of the Fed - more than $ 300 billion per week was issued to banks under various loan programs through the Fed.
In just one week, we neutralized 60% of the balance reduction program, which lasts almost 9 months! The very program that was announced and implemented as the Fed's commitment to fighting inflation. 

[Diger]

The NWO dealt a serious blow to the economy. But not Russia, but the USA.

"Covid" They struck a blow, and Bidon finished off and finishes off. CBO only stimulates the US economy:
- defense industry
-sng
-oil
-I won’t be surprised if again (for safety) they drag gold reserves across the ocean (“if they don’t buy, we’ll turn off the gas”)
(Russia's share in the world economy is 2-3%, at the level of statistical error).
Everything that is not done: is done for the benefit of the Americans.

Bubbles burst sooner or later.

Well, they will announce all the cash $ that is OUTSIDE the US (no matter cash or bank transfer), the US economy will not notice this.
You sold the "national treasure" (resources of the country, brains, hands) for candy wrappers.
Bottom line: they have "gold, diamonds", and you have papers and a little bit of cars and machines that do not work without spare parts and firmware.
By "you" I didn't mean you.

It is impossible to pump anything up to infinity

Rocked, pumped and will swing.
This is the meaning of paper money, or electronic (ugh, even worse)
The party of debtors again defeated the creditors. "The war will write everything off"

[Silver99]

The United States continues to pump up the economy with unsecured dollars, this somewhat strains the whole world, they have no way out of the financial crisis except for unleashing a global world war, and Britain is inciting to push the United States against Russia or China, hence the supply of depleted uranium warheads , apparently enriched uranium does not scare them either.

[Blackmokona]

Quote from Silver99

The United States continues to pump up the economy with unsecured dollars, this somewhat strains the whole world, they have no way out of the financial crisis except for unleashing a global world war, and Britain is inciting to push the United States against Russia or China, hence the supply of depleted uranium warheads , apparently enriched uranium does not scare them either.

Raising the rate is the reverse process. When money is taken out of the economy.

[grandson of Perun]

Quote: BlackMokona

Raising the rate is the reverse process. When money is taken out of the economy.

When money is withdrawn from the economy - this is deflation, the process is the opposite of inflation - printing fiat dollars.
But in general, deflation is no less evil than inflation, because it upsets the balance.

[Blackmokona]

Quote: Perun's grandson

Quote: BlackMokona

Raising the rate is the reverse process. When money is taken out of the economy.

When money is withdrawn from the economy - this is deflation, the process is the opposite of inflation - printing fiat dollars.
But in general, deflation is no less evil than inflation, because it upsets the balance.

Deflation is when there is less money than goods and they rise in price. Inflation is when there is more money than goods. It is only indirectly related to the production of money itself. Their production is directly related to the key rate.

[kapitan92]

Quote: Perun's grandson

When money is taken out of the economy, it's deflation

Sterilization of the money supply is a macroeconomic term, denoting the withdrawal of part of the money from the economy by central banks.
In a certain situation in the financial markets in the economy, there is an excess of free cash, that is, more of them than is required to service current turnover. In this case, the surplus can cause inflation and other negative processes.

[vietnam7]

Ready to stick the topic of Uranus into any article? Doesn't it scare you that shells with a uranium core have been in service with us at least since the beginning of the 90s? If you take "vant" then even earlier. Do you think now we have blanks of the forties in the BC of tanks?

[Terenin]

The Federal Reserve raised the bar another 25 basis points. Now it is 4,75-5%.

Ah, Sho take?
Mustache, the time of zero rates has ended in the west!? Really, the world began to rob less?

[nellyjuri]

The biggest enemy of the country is its internal power.

[Mikhail3]

Curious. The rapid collapse of banks in the United States was stopped by "market methods" - the Fed granted full access to its accounts to all depositors of the collapsed banks. That is, the banks themselves burst, but the depositors will be given money anyway, at the expense of more prosperous ones. This stopped the wave of panic, there is no point in pulling out funds in fire mode anymore.
The market didn't fit even a megameter. How is it that the invisible hand of the market is omnipotent and it is she who leads capitalism to prosperity?! Well, the situation is not suitable for the pollination of suckers, so the market is on the side, we use the management methods of the most efficient system known - tsarism. Give money and everything! Because I said so! Who does not obey - destroy! Works)
However, they are not going to save the economic structure there. Apparently the US economy decided to degrease a little. They will have to re-learn how to save money, and the US authorities believe that their economy has sufficient reserves and development potential. Here we'll see...

[Blackmokona]

Quote: Mikhail3

Curious. The rapid collapse of banks in the United States was stopped by "market methods" - the Fed granted full access to its accounts to all depositors of the collapsed banks. That is, the banks themselves burst, but the depositors will be given money anyway, at the expense of more prosperous ones. This stopped the wave of panic, there is no point in pulling out funds in fire mode anymore.
The market didn't fit even a megameter. How is it that the invisible hand of the market is omnipotent and it is she who leads capitalism to prosperity?! Well, the situation is not suitable for the pollination of suckers, so the market is on the side, we use the management methods of the most efficient system known - tsarism. Give money and everything! Because I said so! Who does not obey - destroy! Works)
However, they are not going to save the economic structure there. Apparently the US economy decided to degrease a little. They will have to re-learn how to save money, and the US authorities believe that their economy has sufficient reserves and development potential. Here we'll see...

This is called deposit insurance. And that the idea that the Fed is a private shop has already disappeared from the Internet?

[Mikhail3]

Deposit insurance - free access to accounts?! What is it with you? To the doctor, urgently ... Insurance, it's 40 cents on the dollar with success, and you will receive at least a year later, if you're lucky. Or maybe 10 cents, and in ten years. And whether the insurance will burst in turn, with the collapse of a couple of banks from its insurance pool.
Log in to your account and withdraw as much as you want, this has nothing to do with insurance))

[VLAD-96]

All the same, they will not catch up with our Central Bank! After all, a year ago we saw a figure of 20%, and once in the dashing 90, yes, in general, there were astronomical rates!
They are unlikely to be in our shoes, at least not in the near future for sure ..
I believe that all these key rates and inflations were invented and implemented by globalist financiers as a tool of fraud by the legalized state and they work for the benefit of the state treasury, but not for the benefit of the people whose savings are depreciating!
It can be said - the state's tool for pulling savings from its citizens!
What was not there before, when the national currency was pegged to gold and was more or less stable over a long period of time! Ah, those were good times.

[Kaufman]

Empty hopes. As long as the dollar remains the most reliable currency

[tralflot1832]

The United States is still far from the historical highs of the early 80s. But then Roni came with his Reaganomics, but it was easier for him. The national debt was small. Then every president, before Trump, raised the national debt by 1,5 - 2 times.

[dimbasic]

How many bankruptcies will there be in America now? the bigger, the better