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Al Mayadeen's correspondent: The Lebanese Army is continuing its investigations and will later announce any information that does not affect the confidentiality of the investigation
Al Mayadeen's correspondent: It has not yet been determined whether the detainees belong to ISIS or another organization
Al Mayadeen's correspondent: Around 10 people of different nationalities, including Lebanese nationals, were detained
Al Mayadeen's correspondent: The Lebanese army arrested a number of people in the Matn area of Mount Lebanon with possession it has not disclosed
Gaza Civil Defense spokesman: We have strong indications that there are martyrs, injuries, and trapped people in the Salah al-Din area
Gaza Civil Defense spokesman: Citizens should avoid Salah al-Din Street because anyone who approaches it is at risk of being directly targeted
Gaza Civil Defense spokesman: Reality is that there is a very limited retreat of the vehicles, with the occupation forces providing cover undeer fire up to Salah al-Din Street
Gaza Civil Defense spokesman: Claims that the Israeli occupation has withdrawn from areas in the neighborhoods of al-Zaytoun, al-Tuffah, and al-Shujaiya are false
Hamas: The two delegations stressed that any negotiations must lead to the achievement of our people's goals and aspirations, foremost among which is ending the war and the complete withdrawal of enemy forces
Hamas: A delegation from the Hamas leadership, led by the head of the leadership council, Mohammad Darwish, met with an Islamic Jihad delegation, headed by its Secretary-General, Ziyad al-Nakhalah

US Fed raises interest rates by 75 basis points, kicking off 4th hike

  • By Al Mayadeen English
  • Source: Agencies
  • 27 Jul 2022 23:16
3 Min Read

The US Federal Reserve is once again raising interest rates as citizens grapple with even higher prices.

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  • A man walks past the Federal Reserve Bank in Washington, DC, US December 16, 2015 (Reuters)
    A man walks past the Federal Reserve Bank in Washington, DC, US December 16, 2015 (Reuters)

The United States Federal Reserve on Wednesday hiked interest rates in the country by 75 basis points, or 0.75%, in the fourth increase this year aimed at tackling surging inflation that impacted every sector in the US economy.

"The Committee decided to raise the target range for the federal funds rate to 2-1/4 to 2-1/2 percent and anticipates that ongoing increases in the target range will be appropriate," the central bank's Federal Open Market Committee (FOMC) said in a statement on its monthly rate decision for June. 

After three increases of 75 basis points, 50 basis points, and 25 basis points, respectively, in June, May, and March, the Fed-determined benchmark US lending rate had previously been set at 1.5 to 1.75%.

The Federal Reserve also said it would move on with balance sheet reductions as scheduled starting September, reducing the tens of billions of dollars it now spends each month on bond purchases to stabilize the economy plagued by a pandemic.

Given the numerous risks the United States is facing, the country only has a meager chance of averting an economic slump, the IMF warned on Tuesday.

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"It's a very narrow path," IMF chief economist Pierre-Olivier Gourinchas said. "The current environment suggests that the likelihood that the US economy can avoid a recession is actually quite narrow." 

While the US labor market is now healthy, with an extremely low unemployment rate of 3.6%, Gourinchas said, he noted that the IMF anticipated that "as this monetary policy tightening continues, then it's going to progressively cool off also the labor market," leading unemployment to increase.

US government data released at the end of June showed that price increases that had held steady in the past 12 months ended in May, while the rise in consumer spending slowed sharply.

This, according to some, may give solace to consumers as a sign that the Federal Reserve's aggressive interest rate plans are beginning to have an effect in limiting the fastest uptick in inflation seen in more than four decades.

Meanwhile, the Fed has been for the past few months aggressively hiking interest rates to try and lower rising prices, but its efforts did not materialize in May, with consumer prices hitting four-decade highs. Consumer prices in May rose 8.6% and soared over what economists thought was the peak in March.

The Biden administration has tried to absolve itself from responsibility for the widespread inflation hitting the country, with Biden himself trying to cast the blame on Russia for the record food and gas prices affecting US citizens.

  • United States
  • Federal reserve
  • US inflation
  • Joe Biden

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