💢 The increase in the cost of the loan in America at the same time as the increase in the price of fuel

💢 The increase in the cost of the loan in America at the same time as the increase in the price of fuel

Khashayar Junadi, BBC correspondent in Washington

Today's decision by America's central bank, the Federal Reserve, to raise the base interest rate by 25 percent and bring it to a range of 3.75 to 4 percent can be seen as a sign of more serious concerns about the sustainability of inflation. This decision was made by a unanimous vote of all 12 voting members.

This is the first time in three years that the US central bank has raised the base interest rate.

For American families and businesses, the interest rate hike could lead to more expensive credit, more difficult financing, and reduced large purchases and investments. This is the same mechanism that helps curb inflation, but it also increases the risk of slowing economic growth and job creation.

Politically, such a decision on the eve of the mid-term elections is not pleasant for the administration of Donald Trump; The president wanted to reduce the interest rate, but the central bank has now moved to raise it. This difference can be seen as a test of the independence of the Federal Reserve.

The war with Iran also influenced this decision. In July, the Federal Reserve noted the surge in energy prices and the increase in the cost of production and transportation to the war, disruptions in shipping in the Strait of Hormuz and damage to the energy infrastructure, and now it can be said that the prolongation of the war with Iran not only increased the financial pressure on American families due to the high cost of fuel, but also increased their borrowing costs.