The Federal Reserve has made its second consecutive 75 basis points rates hike in an attempt to tame runaway US inflation, which topped 9% last month.
As the central bank's two-day policy meeting drew to a close yesterday (Wednesday 28 July), the Federal Open Market Committee announced rates would increase to range between 2.25% and 2.5%. The move follows the bank's first 75bps rise since 1994 last month. "From the standpoint of our congressional mandate to promote maximum employment and price stability, the current picture is plain to see: The labour market is extremely tight, and inflation is much too high," Powell said at a press conference. "Against this backdrop, today the FOMC raised its policy interest rate by three-quarte...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes