Washington: The fear of recession has started to spread in the United States as interest rates reached their highest level in 16 years, with a 0.25% increase in interest rates announced by the US Federal Reserve.
According to foreign media reports, the Federal Reserve raised interest rates by 0.25 basis points, taking the interest rate to its highest level in 16 years, at 5.25% from 5%.
The report stated that this was the tenth increase in interest rates in America over the past year.
Experts believe that there will not be any further increase in interest rates for some time.
On the other hand, after the increase in interest rates, the American stock markets experienced a decline. The Dow Jones, S&P, and Nasdaq all witnessed a decline.
Earlier, the US Treasury Secretary had warned that if the borrowing limit was not increased, the United States would default by June 1. Congress will have to raise or suspend the borrowing limit.