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.
James Hendrickson is an internet entrepreneur, addictive blogger, fisherman and personal finance expert. When he’s not lurking in the cafes in Portland, Oregon, you’ll find him in the great outdoors of the Pacific Northwest. James holds an MA in Sociology from the University of Maryland in College Park and a BA in Sociology from Earlham College. Likes individual stocks, bonds, and precious metals.