The Federal Reserve raises rates half a point, the biggest hike in 22 years

Jerome Powell, chairman of the Fed on screen. / REUTERS

In order to fight runaway inflation

EP Madrid

The United States Federal Reserve (Fed) has decided to raise the country's interest rates by 50 basis points, to place them in a target range of between 0.75% and 1%, as reported on Wednesday in a statement.

This is the biggest rise in the price of money since 2000, 22 years ago. Since then, rate hikes have always been limited to 25 basis point increments.

Likewise, the monetary authority has agreed to begin reducing the size of its balance sheet as of June, at a rate of 37.5 billion dollars per month for an initial period of three months. After that time, the volume of reductions will rise.

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