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WASHINGTON: Fears of the default of the United States are increasing, due to which the risk of rising inflation has arisen.
The US central bank has increased the interest rate by another 0.25 percent, after which the interest rate in the US has increased to the highest level of 5.25 percent.
The Central Bank of America has raised the interest rate to the highest level in 16 years, due to which three American banks have gone bankrupt.
Experts believe that interest rates will not be increased for some time to come. US markets fell on the interest rate hike, with the Dow Jones, S&P, and Nasdaq all down.
Earlier, the US Treasury Secretary warned that if the debt limit is not increased, the US will be bankrupt by June 1. Congress should either increase the debt limit or suspend the limit.
It should be noted that the fears of US default are having negative effects on the oil market due to which crude oil prices have dropped by four dollars.