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U.S. commercial banks follow Fed’s lead and raise interest rates

U.S. banks JP Morgan Chase, City Group Inc. and Wells Fargo raised the federal funds rate from 0.75% to 4.75%, effective today (June 16), to match yesterday’s Federal Reserve ( Fed) rate hike.

Fed raises interest rate by 0.75% to fight inflation.

The Fed needs to be careful with its policy of raising interest rates, lest there be a repeat of what happened in the 1970s, when the Fed raised rates to fight inflation until there was an economic recession.

Inflation has become a hot political issue. Due to increased product prices, people are dissatisfied with the work of the government led by President Jo Biden. This affects confidence and increases the pressure on the supply chain even more.

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