US Federal Reserve hikes interest rate
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The US Federal Reserve will proceed with its first rate hike in two years, and its chairman says the impact of the Ukraine conflict needs to be monitored closely.
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The Chairman of the Federal Reserve says that the Ukraine crisis has unknown ramifications for the US economy
The Federal Reserve will raise interest rates for the first time in two years, Chairman Jerome Powell said Wednesday.
Powell cited inflation and a strong labor market as the reasons for the rate hike.
"With inflation well above 2 percent and a strong labor market, we expect it will be appropriate to raise the target range for the federal funds rate at our meeting later this month."
The chair said the Russia-Ukraine crisis, however, may have unknown ramifications for the US economy, adding that the Federal Reserve will be monitoring the situation closely.
Read more: US inflation rate up to nearly 40-year high of 7%
Even the near-term effects of Russia's special military operation in Donbass, sanctions being imposed on Moscow, and ensuing developments remain uncertain.
Navigator Principal Investors Director Kyle Shostak had said late in January that the Federal Reserve's effort to limit massive inflation is at least six months late and is caused by its own money-printing policies.
The Federal Reserve had previously indicated on Wednesday that it would be prudent to raise interest rates soon, owing to inflation exceeding the objective of the central bank by 2%.
