The Federal Reserve on Wednesday announced an interest rate hike of three-quarters of a percentage point, the largest increase in borrowing costs in
The Federal Reserve on Wednesday announced an interest rate hike of three-quarters of a percentage point, the largest increase in borrowing costs in a single meeting in nearly 30 years, as the central bank wages a battle against price spikes.
The move comes after Friday’s Consumer Price Index data defied expectations and showed that inflation isn’t slowing, even as interest rates across the economy have jumped in anticipation of steady rate moves by the Fed for the rest of the year.
Fears have mounted that the central bank might trigger a recession sometime in the next year with its aggressive rate action. Even if the country avoids a downturn, the Fed’s efforts are likely to reduce the number of job openings, slow wage growth, increase debt burdens for corporations and continue to send mortgage rates soaring.
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