The Federal Reserve raises interest rates by 75 points, the largest increase since 1994

The US Federal Reserve raised interest rates by 75 basis points, the largest increase since 1994 to stem the acceleration of inflation.

The Federal Reserve's Open Market Committee said it raised the interest rate to a range between 1.5% and 1.75%, in line with expectations.

The decision was approved by a majority of the FOMC members, with the exception of Esther George, who voted in favor of a 50 basis point rate hike.

The Fed members expected the interest rate to reach 3.4% at the end of this year, compared to estimates issued last March at 1.9%.

Bank officials also expected interest rates to reach 3.8% next year, compared to previous estimates of 2.8%, before the interest rate begins to decline by 2024 at 3.4% .

On the other hand, the Fed reiterated its plan to reduce its balance sheet by about $47.5 billion per month, starting from the first of this month, and to raise the pace of reduction to $95 billion. Monthly starting in September.