Federal Reserve may increase interest rate by 2023

The US central bank, the Federal Reserve, has said it expects inflation and a firming labor market to rise over the next two years, followed by a hike in policy interest rates. Federal Reserve Chairman Jerome Powell said while addressing reporters after a meeting of the Fed’s free markets committee, we can see a good increase in employment this summer. It is clear that we are moving towards a very strong labor market. In a year the labor market will become very strong.

In its statement, the Fed has expressed the possibility of increasing interest rates by 0.6 percent by the year 2023, but has also said that rates will be raised only when unemployment is low and inflation reaches above two percent. For the time being, it has decided to keep the policy interest rates unchanged in the range of minus 0.25 percent.
After the Fed’s statement, the stock markets saw a fall. The prices of gold and silver also fell.

The statement said that the infection of Kovid-19 has decreased due to vaccination. In the midst of all this, the central bank will continue to support the economy. That $80 billion through government securities and $40 billion through mortgage-backed securities will continue to add liquidity every month.