Jacob Bogatin: The US Federal Reserve raised the base interest rate

The Federal Reserve System (FRS) of the US predictably increased the base interest rate by 0.25 percentage points, to 2-2.25 percent per annum. Until the end of the year, it can grow at least one more time, says Jacob Bogatin.

At the previous meeting in early August, the Federal Open Market Committee left the rate unchanged. Before this, in 2018, it was raised twice – in March and in June (always in increments of 0.25 percentage points). The Fed’s tightening of monetary policy began in 2015 after a seven-year hiatus, during which time the rate was raised seven times, says Jacob Bogatin.

Since June, the rate has been 1.75-2 percent per annum. The market and analysts unanimously expected that on Wednesday the Fed will raise the price to 2-2.25 percent per annum, said Jacob Bogatin.