Federal Reserve Management 75bps interest rate hike It has taken the most aggressive austerity measures in more than a generation to contain inflation for the second month in a row, but could take a toll on the economy. From the report: Faced with the hottest cost pressures in 40 years, policymakers raised their federal funds rate target on Wednesday to the range of 2.25% to 2.5%. Accordingly, the cumulative increase rate for June-July was 150bp, the steepest rise since the era of Paul Volcker’s price struggle in the early 1980s. The Federal Open Market Committee said in a statement released in Washington that it was “strongly committed to bringing inflation back to its 2% target” and “is very wary of inflation risks.” The FOMC “expects that it will be appropriate to continue to increase the scope of the target” and reiterated that it will adjust its policies if risks arise that could impede the achievement of the target.
Fed raises rates by 75 basis points to contain inflation
Source link Fed raises rates by 75 basis points to contain inflation