MOSCOW, February 1 – RIA Novosti. According to the report, after the results of the February meeting, the US Federal Reserve System (FRS) increased the base interest rate by 25 basis points to 4.5-4.75% annually. Press release regulator.

The decision coincided with the predictions of most analysts.

In December, the Fed increased rates by 50 basis points after four consecutive 75 basis points gains at previous meetings. In March last year, the regulator increased the rate for the first time since December 2018 after unplanned cutting it to 0-0.25% per annum in 2020 in response to the severe economic consequences of the coronavirus pandemic.

The Fed said a rate hike would be more appropriate as inflation remains high despite a slight drop in inflation. The Central Bank still expects to achieve maximum employment and 2% inflation in the economy in the long run. The Fed added that the latest figures point to a moderate growth in spending and production, that there has been a significant increase in employment in recent months, while the unemployment rate remains low.

In addition, the Fed confirmed that it will continue to reduce assets on its balance sheet following the plan it published in May. According to the plan, the reduction started on June 1, and it is planned to decrease 47.5 billion dollars a month, 30 billion of which is in the treasury and 17.5 billion in the mortgaged securities, in the first three months. Then, the rate of reduction doubled – to $95 billion per month.

“While choosing an appropriate monetary policy position, the committee will continue to monitor the impact of incoming information on the economic outlook. The committee will be ready to adapt monetary policy appropriately if risks arise to the committee’s objectives,” the regulator said.