US interest rates hit 14-year high

International Desk: The central bank of the United States has again increased the policy interest rate to rein in the abnormal increase in inflation. According to the BBC, interest rates were last increased in July. The new policy rate effective from Thursday (22 September) is 0.75 per cent higher than the previous 2.25 per cent. At present, the central bank is giving loans to banks at 3 percent interest. As a result banks will also be forced to raise their interest rates and loans will become more expensive. The effect of which is a little negative for the general public but good for the future economy. This decision will allow the Federal Reserve, the world's largest financial regulator, to withdraw more excess money from the market. Without such a decision, inflation control is not possible, the head of the Federal Reserve, Jerome Powell, said, "Inflation must be controlled anyway." A more flexible way would be better. But the sad truth is, we have no choice but to be tough." At present, except for Japan and China, all the small and large economies of the world are increasing their interest rates to fight inflation. Inflation is currently at 8.3 percent in the United States, 9.9 percent in the United Kingdom, 7.9 percent in Germany and 10.5 percent in Canada.