Fed makes further 75 basis points hike in bid to tame inflation

Rates have reached 2.25%

The Federal Reserve has made its second consecutive 75 basis points rates hike in an attempt to tame runaway US inflation, which topped 9% last month.

As the central bank's two-day policy meeting drew to a close yesterday (Wednesday 28 July), the Federal Open Market Committee announced rates would increase to range between 2.25% and 2.5%. The move follows the bank's first 75bps rise since 1994 last month. US inflation climbs to 9.1% in June "From the standpoint of our congressional mandate to promote maximum employment and price stability, the current picture is plain to see: The labour market is extremely tight, and inflation is much too high," Powell said at a press conference. "Against this backdrop, today the FOMC raised i...