Fed Signals Rate Hikes to Accelerate Inflation Back to 2%

The U.S. Federal Reserve has stated that rising interest rates will help bring inflation back to its 2% target, as inflation remains at a high level.

On Thursday (local time), the Federal Open Market Committee (FOMC) said in a statement that 'rate hikes will support inflation returning more timely to 2%.'

The Fed assessed that while economic outlook uncertainty continues, domestic consumption remains strong. It also noted that productivity growth has maintained steady momentum and capital investment is at stable levels.