Fed raises rates 

Dana Malcolm 

Staff Writer 

#USA, March 27, 2023 – Despite the uneasy state of the banking sector, the US Federal Reserve moved forward with a quarter point interest rate hike on Wednesday.

The Fed referenced the banking sector turmoil which saw the collapse of several banks, citing uncertainty about where the economy would go in the aftermath.

“Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation,” statement from the Fed said.

US commentators at the Financial Times, say the Fed may be slowing down its rate hike campaign which saw interest rates on borrowed funds skyrocket past 2008 meltdown rates.

“Members of its policy-setting committee removed the oft-repeated warning that “ongoing increases,” would be necessary to bring soaring inflation under control.”

Despite this assessment, it’s likely that the rate hikes will drive up unemployment, a move heavily criticized by several senior Democrats.

Jerome Powell, Chair of the Fed, is committed to getting the inflation rate back to two percent despite the short-term cost and doubled down on this in the statement.

It may make loans harder to get for a while but financial sector insiders in The Turks and Caicos including E Jay Saunders, Finance Minister, forecast minimal impact to the country.

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