US Federal Reserve raises interest rate by 75 basis points amid rising inflation | FULL

U.S. Federal Reserve Chairman Jerome Powell announced an interest rate hike of three-quarters of a percentage point on Wednesday, which is the largest since 1994, to stem a surge in inflation.

The action raised the short-term federal funds rate to a range of 1.50 per cent to 1.75 per cent, and federal officials at the median projected the rate increasing to 3.4 per cent by the end of this year and to 3.8 per cent in 2023 – a substantial shift from projections in March that saw the rate rising to 1.9 per cent this year.

U.S. central bank officials flagged a faster path of increases in borrowing costs to come as well, more closely aligning monetary policy with a rapid shift this week in financial market views of what it will take to bring price pressures under control.

Pointing to a backdrop of the ongoing pandemic and the Russia-Ukraine war, Powell added the U.S. Federal Reserve “anticipates that ongoing increases to that rate will be appropriate.”

A series of sizeable increases would heighten borrowing costs for consumers and businesses, likely leading to an economic slowdown and raising the risk of a recession. The previous rate hikes have already had the effect of raising mortgage rates roughly two percentage points since the year began and have slowed home sales.

For more info, please go to https://globalnews.ca/news/8922181/federal-reserve-interest-rate-hike-june-2022-inflation/

Subscribe to Global News Channel HERE: http://bit.ly/20fcXDc
Like Global News on Facebook HERE: http://bit.ly/255GMJQ
Follow Global News on Twitter HERE: http://bit.ly/1Toz8mt
Follow Global News on Instagram HERE: https://bit.ly/2QZaZIB
#GlobalNews #USFederalReserve #InterestRates