Jerome Powell plans to raise interest rates

United States’ Central Bank’s boss, Jerome Powell announced that he is considering increasing the bank’s interest rates. Jerome Powell said he is in favor of a 0.25% increase in interest rate to counter the rising cost of living while speaking in front of Congress. The banks take this decision amid pressure as the inflation rates in the United States are the highest in 40 years. The prices of food, cars, fuel, other essential commodities have shot up significantly. This would be the first increase in interest rate since March. This decision is taken to keep the current or upcoming high prices under control. Central banks of the country, including the Federal Reserve, plans to keep the inflation rate under 2%. Mr. Powell said: "The inflation that we're experiencing is just nothing like anything we've experienced in decades." Earlier the President of the United States (POTUS), Joe Biden also informed that inflation is at an alarming level in the United States, in his maiden State of the Union address. He also informed that they are planning to implement certain cost-cutting policies in the whole country to limit the rising level of inflation. He also informed that they are going to release around 30 mn barrels of oil from their strategic reserves to check the rising price of crude oil.