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

Rates have reached 2.25%

clock • 2 min read
Fed chair Jerome Powell

Fed chair Jerome Powell

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...

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