- GS-3: Economy & challenges
- GS-2: International Events & its impact on India
Context: In its continuing bid to cool down raging inflation in the United States — at 9.1% in June, the inflation rate is at a four-decade high — the Federal Reserve or Fed (US’ central bank) decided to raise the Federal Funds Rate target by another 75 basis pushing the rate from zero to almost 2.5% now.
Mains Practice Question – How does US Fed rate hike impact the global economy?
Note: Write answers to this question in the comment section.