The unbiased perspective

  When the Federal Reserve raised the interest rate by 25 basis points on Wednesday. This indicates that the U.S. central bank will prioritize the fight against inflation over the turmoil in the banking sector. This actions of the Federal Reserve will likely drive the decisions of central banks around the world, as they seek to strike a delicate balance among growth, inflation and currency volatility.  This decisions comes after it is nearly two weeks of turmoil in the finance industry. This is ninth consecutive increase in one year since the central bank began the current rate-raising cycle to combat rising prices. Over the last 12-months, inflation spiked to a 40-year high. After that, the Bank of England also raised interest rates by a quarter of percentage point, it is their eleventh consecutive increase since December 2021. What does it indicates? "The bank problems are probably making a lot of people think twice", said Diana Furchtgott-Roth, an economics professor at G...