The Fed raised rates by 0.75 percentage points in an effort to boost the slowing economy


The Federal Reserve raises interest rates by 75 points
Marriner S. Eccles Federal Reserve Board Building, Washington, DC.

WASHINGTON, June 15 – The Federal Reserve raised interest rates this week by three-quarters of a percentage point, in an effort to prevent inflation from spiraling out of control. The central bank forecast that unemployment will continue to rise in the coming weeks while economic growth slows. Both factors were largely considered in Wednesday’s decision.

The latest rise from the US central bank was the largest in twenty years, and came after data showed little progress in fighting inflation during this time period.

The Federal Reserve has made it clear that it will raise interest rates much more quickly than expected, a view that financial markets are increasingly adopting.



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