The Federal Reserve announced it is hiking the interest rate by 0.75% as it attempts to slow down the rapidly rising increase in inflation and prevent a looming recession.
The second consecutive 0.75% increase brings the interest rates to a range of 2.25%-2.5%.
“Recent indicators of spending and production have softened. Nonetheless, job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures,” the Federal Open Market Committee said in a statement announcing the rate hikes.
“Russia’s war against Ukraine is causing tremendous human and economic hardship. The war and related events are creating additional upward pressure on inflation and are weighing on global economic activity. The Committee is highly attentive to inflation risks,” the statement continued.
The stock market was up ahead of the expected announcement, buoyed by strong quarterly reports from Google-parent Alphabet and Microsoft.
