Federal Reserve hikes interest rates 0.75 per cent for second time in two months

The Federal Reserve has wrapped up its two-day meeting with Chair Jerome Powell announcing another 0.75 percentage point interest rate hike.

Policymakers are attempting to cool surging inflation, currently at levels not seen in four decades. The consumer price index for June jumped 9.1 per cent from a year ago.

This is the second increase of this magnitude since June and was made in a unanimous vote. The Fed is under pressure to continue raising interest rates aggressively.

It will be the Fed’s fourth rate hike since March. Since then, the central bank has tightened credit ever more aggressively.

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